Re Notice of AGM, Proxy Form and 2008 Annual

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Re Notice of AGM, Proxy Form and 2008 Annual Powered By Docstoc
					                                                             ABN: 23 106 719 868
For personal use only

                                                Level 2,160 Pitt Street Mall Sydney NSW 2000
                                                   Ph. (02) 9210-7000 Fax. (02) 9210-7099




                        10th September 2008


                        The Manager,
                        Company Announcements
                        Australian Stock Exchange Limited
                        Exchange Centre
                        20 Bridge Street
                        Sydney NSW 2000


                        Dear Sir,


                        Re: Notice of AGM, Proxy Form and 2008 Annual Report

                        Please be advised that the company is today dispatching to its shareholders its
                        2008 Annual Report, along with a Notice of Annual General Meeting and Voting
                        Proxy Form.

                        Please find attached:

                        •     Notice of Annual General Meeting
                        •     Sample Proxy Form
                        •     2008 Annual Report



                        Yours faithfully




                        Richard Pillinger
                        Company Secretary
                                                                         ABN: 23 106 719 868
                                                           evel 2,160 Pitt Street Sydney NSW 2000
                                                           Ph. (02) 9210-7000 Fax. (02) 9210-7099



                                                                         ABN: 23 106 719 868
                                                             Level 2,160 Pitt Street Mall Sydney NSW 2000
                                                               Ph. (02) 9210-7000 Fax. (02) 9210-7099
For personal use only

                                                     NOTICE OF ANNUAL GENERAL MEETING

                        Notice is hereby given that the Fifth Annual General Meeting of Brickworks Investment Company Limited is
                        to be held at The Wesley Conference Centre, The Lyceum Room, 220 Pitt Street, Sydney, NSW 2000 on
                                       th
                        Wednesday 15 October 2008 at 11.30am.

                        1. Annual Report
                          To receive and consider the annual financial report and the reports of the directors and of the auditor for
                          the financial year ended 30 June 2008.

                        2. Remuneration Report
                          To adopt the remuneration report for the year ended 30 June 2008.
                          Note: Pursuant to section 250R(3) of the Corporations Act the vote on this resolution is advisory only and does not bind
                          the directors or the company

                        3. Election of a Director
                          To re-elect by ordinary resolution as a director, Mr DC Hall; who ceases to hold office in accordance with
                          the Company's Constitution Rule 6.3(c) and, being eligible, offers himself for re-election.

                        4. Appointment of Auditor of the Company

                          To consider, and if thought fit, pass as an ordinary resolution the following:

                          “That, Ruwald & Evans (of Level 1, 276 Pitt Street, Sydney, NSW 2000) having been nominated for
                          appointment as the Company’s auditor and having consented in writing to so act, be appointed as auditor
                          of the Company with such appointment to take effect from the later of the passing of this resolution and the
                          time at which the resignation of Travis & Travis as auditor takes effect.”

                        5. Other Matters
                          To consider any other matters, which may be bought before the meeting in conformity with the Company's
                          Constitution.

                          For the purpose of the Corporations Act, the Company has determined that all securities of the Company
                          that are quoted securities at 7.00pm Australian Eastern Standard Time on Monday 13th October 2008 will
                          be taken, for the purpose of the Meeting, to be held by the persons who held them at the time.
                          Accordingly, transactions registered after that time will be disregarded in determining entitlements to
                          attend and vote at the meeting.

                          PROXIES
                          A Member entitled to attend at the Meeting may appoint a Proxy to attend and vote instead of the Member.

                          By order of the Board




                          Richard Pillinger
                          Company Secretary
                          4th September 2008
                                                                     ABN: 23 106 719 868
                                                        evel 2,160 Pitt Street Sydney NSW 2000
                                                        Ph. (02) 9210-7000 Fax. (02) 9210-7099



                                                                      ABN: 23 106 719 868
                                                          Level 2,160 Pitt Street Mall Sydney NSW 2000
                                                            Ph. (02) 9210-7000 Fax. (02) 9210-7099
For personal use only
                        ANNUAL GENERAL MEETING
                        EXPLANATORY NOTES

                        Item 1. - Receive and consider the financial and other reports
                                 (ordinary resolution)

                        This item does not require voting by shareholders. It is intended to provide an opportunity for shareholders to
                        raise questions on the reports themselves and on the performance and management of the company.

                        The auditors of the company will be present at the meeting and will also be available to answer any
                        questions.


                        Item 2. - Adopt the remuneration report for the year ended 30 June 2008
                                 (ordinary resolution)

                        The vote on this resolution will be advisory only and does not bind the directors or the company.
                        Shareholders will also be given a reasonable opportunity, as a whole, to ask questions about, and make
                        comments on, the remuneration report.

                        The remuneration report appears in the directors’ report as follows;


                        “Remuneration Report

                        Payment to non-executive directors is fixed at $300,000 until shareholders, by ordinary resolution, approve
                        some other fixed sum amount. This amount is to be divided amongst the Directors as they may determine.

                        These fees exclude any additional fee for any service based agreement which may be agreed from time to
                        time, and also excludes statutory superannuation and the reimbursement of out of pocket expenses.

                        Details of the nature and amount of each Non – Executive Director’s emoluments from the Company and
                        controlled entities in respect of the year to 30 June 2008 were:

                                                                                   Equity                   Other
                                           Primary       Superannuation         Compensation             Compensation        Total
                                              $                $                     $                        $                $
                        RD Millner         40,000            3,600                   -                        -             43,600
                        DC Hall            30,000            2,700                   -                        -             32,700
                        AJ Payne           25,000            2,250                   -                        -             27,250
                        GG Hill            25,000            2,250                   -                        -             27,250
                        Total             120,000           10,800                   -                        -            130,800

                        There were no retirement allowances provided for the retirement of non-executive directors”
                                                                     ABN: 23 106 719 868
                                                        evel 2,160 Pitt Street Sydney NSW 2000
                                                        Ph. (02) 9210-7000 Fax. (02) 9210-7099



                                                                      ABN: 23 106 719 868
                                                          Level 2,160 Pitt Street Mall Sydney NSW 2000
                                                            Ph. (02) 9210-7000 Fax. (02) 9210-7099
For personal use only

                        ANNUAL GENERAL MEETING
                        EXPLANATORY NOTES

                        Item 3. Re-election of a director (ordinary resolution)

                        David Capp Hall, FCA, FAICD – Independent Non-Executive Director

                        Joined the BKI board on 17 October 2003.

                        Mr Hall is a Chartered Accountant with experience in corporate management and finance. He holds
                        directorships in other companies and is the Chairman of the audit committee. During the past three years,
                        Mr. Hall also served as a director of the following listed companies:

                                  Ainsworth Game Technology Limited
                                  Undercoverwear Limited

                        If re-elected, David will continue as a director and be subject to retirement by rotation under the Brickworks
                        Investment Company Limited (‘BKI’) constitution.

                        The board unanimously recommends that shareholders vote in favour of the re-election of Mr David Hall.

                        Item 4. Appointment of Auditor of the Company

                        Following the resignation of Travis & Travis as Company auditors as a result of partner rotation
                        requirements, the directors recommend the appointment of Ruwald & Evans as Auditors of the Company. In
                        accordance with s328B of the Corporations Act, it is necessary for a member of the Company to nominate
                        Ruwald & Evans for appointment as Auditors, and for a copy of that nomination to be sent to Ruwald &
                        Evans, Travis & Travis, and to each person entitled to receive notice of general meetings of the Company
                        not less than 7 days before the meeting.

                        A copy of the nomination of Ruwald & Evans by Mr. David Hall, a Shareholder of the Company is included in
                        this pack. Ruwald & Evans are registered company auditors and have had previous experience of
                        conducting audits of public listed companies. The Company’s current auditor, Travis & Travis, will seek the
                        consent of ASIC to resign as Auditor of the Company under s.329(5) of the Corporations Act, effective upon
                        the appointment of a new Auditor. Ruwald & Evans have consented to the appointment as Auditors pursuant
                        to s.328A of the Corporations Act in the event that this resolution is passed at the meeting.

                        ADMISSION TO MEETING

                        Shareholders who will be attending the meeting, and who will not be appointing a proxy, are asked to bring
                        the proxy form to the meeting to facilitate the admission process.

                        Shareholders who do not plan to attend the meeting are encouraged to complete the on-line proxy
                        registration process as explained on the proxy form. Alternatively, shareholders can return the proxy form via
                        the various options contained on the reverse side of the proxy form.
                                                                      ABN: 23 106 719 868
                                                        evel 2,160 Pitt Street Sydney NSW 2000
                                                        Ph. (02) 9210-7000 Fax. (02) 9210-7099



                                                                      ABN: 23 106 719 868
                                                          Level 2,160 Pitt Street Mall Sydney NSW 2000
                                                            Ph. (02) 9210-7000 Fax. (02) 9210-7099
For personal use only
                        ANNUAL GENERAL MEETING
                        EXPLANATORY NOTES

                        QUESTIONS AND COMMENTS BY SHAREHOLDERS AT THE MEETING

                        In accordance with the Corporations Act 2001, a reasonable opportunity will be given to shareholders, as a
                        whole, to ask questions about or make comments on the management of the company at the meeting.

                        Similarly, a reasonable opportunity will be given to shareholders, as a whole, to ask the company’s external
                        auditor questions relevant to:

                            (i)      the conduct of the audit; and
                            (ii)     the preparation and content of the auditor’s report; and
                            (iii)    the accounting policies adopted by the company in relation to the preparation of the financial
                                     statements; and
                            (iv)     the independence of the auditor in relation to the conduct of the audit.

                        Shareholders may also submit a written question to the auditor if the question is relevant to:

                            (a) the content of the auditor’s report to be considered at the AGM; or
                            (b) the conduct of the audit of the annual financial report to be considered at the AGM.

                        Relevant written questions to the auditor must be received no later than 5.00pm (Sydney time) on Friday 3rd
                        October 2008. A list of those relevant written questions will be made available to shareholders attending the
                        AGM.

                        If written answers are tabled at the AGM, they will be made available to shareholders as soon as practicable
                        after the AGM.

                        Please send any written questions for the auditor to:

                        Brickworks Investment Company Limited
                        Level 2, 160 Pitt Street Mall
                        Sydney NSW 2000

                        or by facsimile to +61 (2) 9210-7099
                                                                rd
                        by no later than 5.00pm Sydney Time on 3 October 2008.
                         Nomination from a shareholder for the appointment of Ruwald & Evans as Auditor - the subject of
                                                                  Resolution 4




                        29 August 2008
For personal use only

                        The Company Secretary
                        Brickworks Investment Company Limited
                        Level 2, 160 Pitt Street Mall
                        Sydney NSW 2000



                        Dear Sir


                        NOMINATION OF RUWALD & EVANS AS AUDITOR OF BRICKWORKS INVESTMENT COMPANY
                        LIMITED

                        I, David Hall, being a shareholder of Brickworks Investment Company Limited, hereby nominate Ruwald &
                        Evans of Level 1, 276 Pitt Street, Sydney, NSW 2000, for appointment as auditor of Brickworks Investment
                        Company Limited at its 2008 Annual General Meeting.

                        I consent to the distribution of a copy of this notice of nomination as an annexure to the Notice of Annual
                        General Meeting and Explanatory Statement of Brickworks Investment Company Limited as required by
                        section 328B (3) of the Corporations Act 2001 (Cth).

                        Yours faithfully,




                        David Hall
                                                                                                        Lodge your vote:
                                                                                                             By Mail:
                                                                                                             Computershare Investor Services Pty Limited
                                                                                                             GPO Box 242 Melbourne
                                                                                                             Victoria 3001 Australia

                                                                                                        Alternatively you can fax your form to
                                                                                                        +61 3 9473 2118
For personal use only

                                                                                                        For all enquiries call:
                                                                                                        (within Australia) 1300 850 505
                                                                                                        (outside Australia) +61 3 9415 4000




         Proxy Form

                 For your vote to be effective it must be received by 11.30am (AEDT) Monday 13 October 2008

         How to Vote on Items of Business                                           Signing Instructions
         All your securities will be voted in accordance with your directions.      Individual: Where the holding is in one name, the securityholder
                                                                                    must sign.
         Appointment of Proxy                                                       Joint Holding: Where the holding is in more than one name, all of
         Voting 100% of your holding: Direct your proxy how to vote by              the securityholders should sign.
         marking one of the boxes opposite each item of business. If you do         Power of Attorney: If you have not already lodged the Power of
         not mark a box your proxy may vote as they choose. If you mark             Attorney with the registry, please attach a certified photocopy of the
         more than one box on an item your vote will be invalid on that item.       Power of Attorney to this form when you return it.
                                                                                    Companies: Where the company has a Sole Director who is also
         Voting a portion of your holding: Indicate a portion of your               the Sole Company Secretary, this form must be signed by that
         voting rights by inserting the percentage or number of securities          person. If the company (pursuant to section 204A of the
         you wish to vote in the For, Against or Abstain box or boxes. The          Corporations Act 2001) does not have a Company Secretary, a
         sum of the votes cast must not exceed your voting entitlement or           Sole Director can also sign alone. Otherwise this form must be
         100%.                                                                      signed by a Director jointly with either another Director or a
                                                                                    Company Secretary. Please sign in the appropriate place to
         Appointing a second proxy: You are entitled to appoint up to two           indicate the office held.
         proxies to attend the meeting and vote on a poll. If you appoint two
         proxies you must specify the percentage of votes or number of              Attending the Meeting
         securities for each proxy, otherwise each proxy may exercise half of       Bring this form to assist registration. If a representative of a corporate
         the votes. When appointing a second proxy write both names and             securityholder or proxy is to attend the meeting you will need to
         the percentage of votes or number of securities for each in Step 1         provide the appropriate ''Certificate of Appointment of Corporate
         overleaf.                                                                  Representative'' prior to admission. A form of the certificate may be
                                                                                    obtained from Computershare or online at www.computershare.com.
         A proxy need not be a securityholder of the Company.
                                                                                    Comments & Questions: If you have any comments or questions
                                                                                    for the company, please write them on a separate sheet of paper and
                                                                                    return with this form.


                                                                                    Turn over to complete the form


                               View your securityholder information, 24 hours a day, 7 days a week:
                              www.investorcentre.com
                                                                             Your secure access information is:
                        Review your securityholding
                        Update your securityholding

                                                                                  PLEASE NOTE: For security reasons it is important that you keep your
                                                                                  SRN/HIN confidential.


                                                                                                                         023236_PROXY_6_1_RUNONS/000001/000002
                                                                                             Change of address. If incorrect,
                                                                                             mark this box and make the
                                                                                             correction in the space to the left.
                                                                                             Securityholders sponsored by a
                                                                                             broker (reference number
                                                                                             commences with 'X') should advise
                                                                                             your broker of any changes.



                    Proxy Form                                                                                     Please mark                  to indicate your directions

                              Appoint a Proxy to Vote on Your Behalf
For personal use only

                    I/We being a member/s of Brickworks Investment Company Limited hereby appoint
                                                                                                                                              PLEASE NOTE: Leave this box blank if
                            the Chairman                                                                                                      you have selected the Chairman of the
                                           OR                                                                                                 Meeting. Do not insert your own name(s).
                            of the meeting
                    or failing the individual or body corporate named, or if no individual or body corporate is named, the Chairman of the Meeting, as my/our proxy
                    to act generally at the meeting on my/our behalf and to vote in accordance with the following directions (or if no directions have been given, as
                    the proxy sees fit) at the Annual General Meeting of Brickworks Investment Company Limited to be held at The Wesley Conference Centre, The
                    Lyceum Room, 220 Pitt Street, Sydney, on Wednesday 15 October at 11.30am and at any adjournment of that meeting.

                                                                           PLEASE NOTE: If you mark the Abstain box for an item, you are directing your proxy not to vote on your
                              Items of Business                            behalf on a show of hands or a poll and your votes will not be counted in computing the required majority.




                    2   To adopt the remuneration report for the year ended 30 June 2008.


                    3   To re-elect Mr D.C. Hall as a Director.


                    4   To appoint Ruwald & Evans as auditor of the Company.




                    The Chairman of the Meeting intends to vote undirected proxies in favour of each item of business.


                              Signature of Securityholder(s)                           This section must be completed.
                    Individual or Securityholder 1                        Securityholder 2                                          Securityholder 3




                    Sole Director and Sole Company Secretary               Director                                                 Director/Company Secretary

                                                                                                  Contact
                    Contact                                                                       Daytime
                    Name                                                                          Telephone                                             Date       /          /


                   BKI                                                   023236A
                                                Annual Report
                                             for year ended 30 June 2008
For personal use only




                        BRICKWORKS INVESTMENT COMPANY LIMITED
                                                         ABN 23 106 719 868
                    Brickworks Investment Company Limited

                    ABN: 23 106 719 868


                    CORPORATE DIRECTORY
For personal use only

                    Directors
                    Robert Dobson Millner             Non-Executive Director and Chairman
                    David Capp Hall                   Non-Executive Director
                    Alexander James Payne             Non-Executive Director
                    Geoffrey Guild Hill               Non-Executive Director

                    Secretary
                    Richard Pillinger

                    Registered Office
                    Level 2
                    160 Pitt Street Mall
                    Sydney NSW 2000
                    Telephone:       (02) 9210 7000
                    Facsimile:       (02) 9210 7099
                    Postal Address:
                    GPO Box 5015
                    Sydney 2001

                    Auditors
                    Travis & Travis
                    1/114 Longueville Road
                    Lane Cove 2066

                    Investment Manager
                    Souls Funds Management Limited
                    Level 14
                    15 Castlereagh Street
                    Sydney 2000

                    Share Registry
                    Computershare Investor Services Pty Limited
                    60 Carrington Street
                    Sydney 2000

                    Australian Stock Exchange Code
                    Ordinary Shares          BKI

                    Website
                    http//:www.brickworksinvestments.com.au




                                                                                            2008 Annual Report
                    Brickworks Investment Company Limited




                        Contents                               Page No.
For personal use only

                        Financial Highlights                         2

                        Investment Portfolio at 30 June 2008         4

                        Group Profile                                7

                        Chairman’s Address                           8

                        Directors’ Report                           10

                        Corporate Governance                        15

                        Income Statement                            23

                        Balance Sheet                               24

                        Statement of changes in Equity              25

                        Cash Flow Statement                         26

                        Notes to the Financial Statements           27

                        Directors’ Declaration                      45

                        Independent Audit Report                    46

                        Auditor’s Independence Declaration          47

                        ASX Additional Information                  48




                                                                         1
                    2008 Annual Report
                    Brickworks Investment Company Limited




                    FINANCIAL HIGHLIGHTS
For personal use only

                    I Revenue Performance

                                                                                        % Change            Amount of
                                                                                                              Change
                                                                                                                $’000                         $’000

                          Dividend/distribution income – Ordinary            Up            36.45%                4,605            to        17,236
                          Dividend/distribution income - Special            Down           42.67%                 (664)           to           892

                    I Profits

                                                                                        % Change            Amount of
                                                                                                              Change
                                                                                                                  $’000                       $’000

                        Operating profit after tax but before                 Up           46.79%                5,832            to        18,296
                        special dividend income and realised
                        gains on investment portfolio
                          Dividend Income - Special                         Down           42.67%                 (664)           to            892
                          Realised gains on investment portfolio
                          after tax                                           Up          272.31%                2,478            to          3,388
                          Net profit for the year attributable to
                          shareholders                                        Up           51.21%                7,646            to        22,576

                    I Earnings per share

                                                                                        % Change            Amount of
                                                                                                              Change
                                                                                                               (cents)                        $’000

                          Basic earnings per share before                     Up           12.48%                  0.72           to           6.49
                          special dividend income and realised
                          gains on investment portfolio
                          Basic earnings per share after special              Up           15.92%                  1.10           to           8.01
                          dividend income and realised gains
                          on investment portfolio

                    I Fully franked final dividend of 3.0 cents per share.
                          This brings the total fully franked dividends for the year to 6.0 cents per share (2007: 5.3 cents per share)

                    I Total portfolio value as at 30 June 2008 of $437.6 million (2007: $423.0 million)

                    I Net Tangible Asset (NTA) History:

                                                                    30/06/04         30/06/05        30/06/06        30/06/07           30/06/08

                          NTA Before Tax                                $1.08            $1.28           $1.43            $1.69             $1.52
                          NTA After Tax                                 $1.06            $1.20           $1.32            $1.51             $1.41




                          2
                                                                                                                                       2008 Annual Report
                    Brickworks Investment Company Limited




                    FINANCIAL HIGHLIGHTS (continued)
For personal use only

                    I Share Price History

                                                                    30/06/04         30/06/05         30/06/06       30/06/07   30/06/08

                        BKI Prospectus IPO issued @ $1.00
                        December 2003                                   $0.98            $1.09               $1.35      $1.51      $1.22
                        Annual % Growth                                     -           11.2%               23.9%      11.9%     -19.2%

                    I Dividend History (cents per share)

                                                                    30/06/04         30/06/05         30/06/06       30/06/07   30/06/08

                        Interim                                             -*              2.1                2.5        2.6        3.0
                        Final                                              2.0              2.2                2.5        2.7        3.0
                        Special                                              -                -                1.0          -          -
                        Total                                              2.0              4.3                6.0        5.3        6.0

                    * This Company was listed on ASX 12 December 2003, no interim dividend is applicable.




                                                                                                                                           3
                    2008 Annual Report
                    Brickworks Investment Company Limited




                    List of securities held and their market value at 30 June 2008 were:
For personal use only

                                                                            Shares           Fair        Portfolio
                        Stock                                                Held           Value         Weight
                                                                                           ($’000)          %


                        Banks
                        Australia and New Zealand Banking Group Limited    209,182           3,916         0.89%
                        Bank of Queensland Limited                         150,382           1,955         0.45%
                        Bendigo Bank Limited                               485,392           5,305         1.21%
                        Commonwealth Bank                                  729,930          29,307         6.70%
                        National Australia Bank Limited                   1,583,690         41,920         9.58%
                        St George Bank CPS                                  10,000            966          0.22%
                        St George Bank CPS II                                  165             16          0.00%
                        St George Bank Limited                             521,860          14,148         3.23%
                        Westpac Banking Corporation                        203,172           4,063         0.93%
                                                                                           101,596        23.21%
                        Capital Goods
                        Alesco Corporation Limited                         176,645           1,219         0.28%
                        GWA International Limited                         1,310,000          3,275         0.75%
                                                                                             4,494         1.03%
                        Commercial Services & Supplies
                        Brambles Limited                                   505,952           4,412         1.01%
                        Campbell Brothers Limited                          306,629           8,371         1.91%
                        Salmat Limited                                     786,085           2,138         0.49%
                        Skilled Group Limited                              394,826           1,184         0.27%
                                                                                            16,105         3.68%
                        Consumer Durables & Apparel
                        Gazal Corporation Limited                          211,865            402          0.09%
                                                                                              402          0.09%
                        Consumer Services
                        Crown Limited                                       75,574            701          0.16%
                        Tabcorp Holdings Limited                           253,900           2,488         0.57%
                        Tatts Group Limited                                800,128           1,872         0.43%
                                                                                             5,061         1.16%
                        Diversified Financials
                        Australian Securities Exchange Limited               30,100            945         0.22%
                        Choiseul Investments Limited                      1,082,985          5,588         1.28%
                        Huntley Investment Company Limited                6,981,320          5,061         1.16%
                        Macquarie Group Limited                             136,650          6,644         1.52%
                        Milton Corporation Limited                          106,326          2,049         0.47%
                        Perpetual Limited                                    52,510          2,239         0.51%
                                                                                            22,526         5.15%

                         4
                                                                                                     2008 Annual Report
                    Brickworks Investment Company Limited




                    List of securities (continued):
For personal use only

                                                                         Shares      Fair    Portfolio
                        Stock                                             Held      Value     Weight
                                                                                   ($’000)      %


                        Energy
                        Caltex Australia Limited                          86,950    1,130     0.26%
                        New Hope Corporation Limited                  14,060,452   74,099    16.93%
                        Santos Limited                                    70,000    1,499     0.34%
                        Woodside Petroleum Limited                       215,484   14,524     3.32%
                                                                                   91,252    20.85%
                        Food, Beverages & Tobacco
                        Coca Cola Amatil Limited                        436,000     3,052     0.70%
                        Graincorp Limited                                91,044       737     0.17%
                        Lion Nathan Limited                             227,300     1,941     0.44%
                                                                                    5,730     1.31%
                        Food & Staples Retailing
                        AWB Limited                                      782,000    1,885     0.43%
                        Metcash Limited                                1,385,833    5,128     1.17%
                        Wesfarmers Limited                               284,625   10,614     2.43%
                        Woolworths Limited                               571,000   13,961     3.19%
                                                                                   31,588     7.22%
                        Health Care Equipment & Services
                        Clover Corporation Limited                      858,000       133     0.03%
                                                                                      133     0.03%
                        Insurance
                        AMP Limited                                      516,865    3,453     0.79%
                        AXA Asia Pacific Holdings Limited                426,000    1,994     0.46%
                        Insurance Australia Group Limited              1,076,446    3,714     0.85%
                        QBE Insurance Group Limited                       65,096    1,449     0.33%
                        Suncorp-Metway Limited Convertible
                        Preference Shares                                40,000     4,040     0.92%
                        Suncorp-Metway Limited                          383,000     4,979     1.14%
                                                                                   19,629     4.49%
                        Materials
                        Alumina Limited                                 809,013     3,819     0.87%
                        BHP Billiton Limited                            927,629    40,361     9.22%
                        Bluescope Steel Limited                         233,568     2,623     0.60%
                        Orica Limited Step up Preference Securities      10,000       951     0.22%
                        Onesteel Limited                                690,000     5,134     1.17%
                        Rio Tinto Limited                                28,753     3,888     0.89%
                        Wattyl Limited                                  673,881       943     0.22%
                                                                                   57,719    13.19%

                                                                                                    5
                    2008 Annual Report
                    Brickworks Investment Company Limited




                    List of securities (continued):
For personal use only

                                                                                Shares                   Fair            Portfolio
                        Stock                                                    Held                   Value             Weight
                                                                                                       ($’000)              %

                        Media
                        Consolidated Media Holdings                              75,574                   249              0.06%
                        Fairfax Media Limited                                1,921,163                  5,591              1.28%
                        Ten Network Holdings Limited                           747,429                  1,020              0.23%
                        West Australian Newspapers Holdings Limited            348,048                  2,750              0.63%
                                                                                                        9,610              2.20%
                        Real Estate
                        Westfield Group                                        193,157                  3,141              0.72%
                                                                                                        3,141              0.72%
                        Retailing
                        ARB Corporation Limited                                513,437                  1,854              0.42%
                                                                                                        1,854              0.42%
                        Telecommunications Services
                        SP Telemedia Limited                                 3,322,223                    598              0.14%
                        Telstra Corporation Limited                          2,436,000                 10,329              2.36%
                                                                                                       10,927              2.50%
                        Transportation
                        Lindsay Australia Limited                            3,120,034                    530              0.12%
                        Macquarie Infrastructure Group                         762,329                  1,738              0.40%
                        Qantas Airways Limited                                 602,500                  1,832              0.42%
                        Transurban Group                                       134,581                    569              0.13%
                                                                                                        4,669              1.07%
                        Utilities
                        AGL Energy Limited                                     431,700                  6,173              1.41%
                        Babcock & Brown Infrastructure Group                 1,087,124                    739              0.17%
                        BBI EPS Limited                                        946,011                    653              0.15%
                                                                                                        7,565              1.73%

                        Total Investments                                                             394,001            90.03%
                        Bank Deposit                                                                   43,645             9.97%

                                                                  TOTAL PORTFOLIO                     437,646           100.00%


                        The Company is not a substantial shareholder in any of the investee corporations in accordance with the
                        Corporations Act 2001, as each equity investment represents less than 5% of the issued capital of the
                        investee corporation.


                         6
                                                                                                                    2008 Annual Report
                    Brickworks Investment Company Limited




                    GROUP PROFILE
For personal use only

                    Brickworks Investment Company Limited (the Group) is a Listed Investment Company on the Australian Stock
                    Exchange. The Group invests in a diversified portfolio of Australian shares, trusts and interest bearing securities.
                    The Group was formed on 17 October 2003 to take over the investment portfolio of Brickworks Limited.
                    Shares were listed on the Australian Stock Exchange Limited commencing 12 December 2003.
                    At 30 June 2008 the market capitalisation of the Group was $355.0 million.

                    Corporate Objectives
                    The Group aims to generate an increasing income stream for distribution to its shareholders in the form of fully
                    franked dividends, to the extent of its available imputation tax credits, through long-term investment in a
                    portfolio of assets that are also able to deliver long term capital growth to shareholders.

                    Investment Strategy
                    The Group is a long-term investor in companies, trusts and interest bearing securities with a focus on
                    Australian entities. It primarily seeks to invest in well-managed businesses with a profitable history and with the
                    expectation of sound dividend and distribution growth.

                    Dividend Policy
                    The Group will pay the maximum amount of realised profits after tax to its shareholders in the form of fully
                    franked dividends to the extent permitted by the Corporations Act, the Income Tax Assessment Act and
                    prudent business practices from profits obtained through interest, dividends and other income it receives from
                    its investments.
                    Dividends will be declared by the Board of Directors out of realised profit after tax, excluding realised capital
                    profit from any disposals of long-term investments.

                    Portfolio Management
                    The Group has appointed Souls Funds Management Limited to act as Portfolio Manager and provide investment
                    advisory services to the Board of Directors and its Investment Committee, including the implementation and
                    execution of investment decisions and the day to day administration of the investment portfolio. The Directors
                    have previously announced that management of the Listed Investment Portfolio will be brought in house on
                    expiry of the current agreement with Souls Funds Management Limited on 1 December 2008.
                    The Group also engages Corporate and Administrative Services Pty Ltd to provide accounting and group
                    secretarial services.




                                                                                                                                        7
                    2008 Annual Report
                    Brickworks Investment Company Limited




                    CHAIRMAN’S ADDRESS
For personal use only

                    Dear Shareholders,
                    I am pleased to enclose the fifth Annual Report of Brickworks Investment Company Limited for the year ended
                    30th June 2008.
                    The consolidated profit for the Group after providing for income tax increased by 51.2% to $22,576,000 (2007
                    $14,930,000).
                    Revenue from the investment portfolio comprising ordinary dividend income increased by 36.4% to
                    $17,236,000, whilst revenue from special dividend income decreased during the year by 42.7% to $892,000.
                    At the 30th June 2008 the portfolio of investments was valued at $437.6 million compared to $423.0 million as
                    at June 2007.
                    The Group’s portfolio return continues to outperform the ASX/S&P 300 Accumulation Index return as shown below:


                                                                                                          Portfolio Return*
                                           Period                                                     BKI            ASX/S&P 300
                                           6 Months to 30 June 2008                                 -4.6%              -16.1%
                                           12 Months to 30 June 2008                                -6.0%              -13.7%
                                           24 Months to 30 June 2008                                 6.7%                5.6%
                                         * Portfolio Return measured by change in NTA backing per share plus dividend reinvested


                    During the year, the Group was successful in raising $54.1million additional share capital through a Share
                    Placement, Share Purchase Plan and the Dividend Reinvestment Plan.

                    Portfolio Movements
                    Major investment purchases during the year were Suncorp-Metway Limited Convertible Preference Shares,
                    AMP Limited, Tattersall’s Group Limited, Woolworths Limited and Metcash; while the final instalment for Telstra
                    (T3) shares was completed.
                    Net purchases amounted to $75.6 million excluding shares acquired on takeovers.
                    The only sales were Consolidated Rutile Limited, Coventry Group Limited, APA Group, Babcock and Brown
                    Power, Babcock and Brown Wind Partners Group and Illuka Resources Limited for a total of $5.6 million.
                    There were takeovers of Alinta Limited by Babcock and Brown and HPAL Limited by Salmat Limited. Publishing
                    and Broadcasting Limited was split into Crown Limited and Consolidated Media Holdings Limited.
                    Also, there was a merger during the year between Adelaide Bank Limited and Bendigo Bank.




                        8
                                                                                                                                   2008 Annual Report
                    Brickworks Investment Company Limited




                    CHAIRMAN’S ADDRESS - Continued
For personal use only

                    List of Top 20 Securities held as at 30 June 2008:
                                                                                                        Shares       Fair    Portfolio
                                                                                                         Held       Value    Weight *
                        Stock                                                                                      ($’000)      %
                        1    New Hope Corporation Limited                                             14,060,452   74,099    18.81%
                        2    National Australia Bank Limited                                           1,583,690   41,920    10.64%
                        3    BHP Billiton Limited                                                        927,629   40,361    10.24%
                        4    Commonwealth Bank                                                           729,930   29,307     7.44%
                        5    Woodside Petroleum Limited                                                  215,484   14,524     3.69%
                        6    St George Bank Limited                                                      521,860   14,148     3.59%
                        7    Woolworths Limited                                                          571,000   13,961     3.54%
                        8    Wesfarmers Limited                                                          284,625   10,614     2.69%
                        9    Telstra Corporation Limited                                               2,436,000   10,329     2.62%
                        10   Campbell Brothers Limited                                                   306,629    8,371     2.12%
                        11   Macquarie Group Limited                                                     136,650    6,644     1.69%
                        12   AGL Energy Limited                                                          431,700    6,173     1.57%
                        13   Fairfax Media Limited                                                     1,921,163    5,591     1.42%
                        14   Choiseul Investments Limited                                              1,082,985    5,588     1.42%
                        15   Bendigo Bank Limited                                                        485,392    5,305     1.35%
                        16   Onesteel Limited                                                            690,000    5,134     1.30%
                        17   Metcash Limited                                                           1,385,833    5,128     1.30%
                        18   Huntley Investment Company Limited                                        6,981,320    5,061     1.28%
                        19   Suncorp-Metway Limited                                                      383,000    4,979     1.26%
                        20   Brambles Limited                                                            505,952    4,412     1.12%
                    * Weighting is a percentage of the listed portfolio only, excluding cash assets


                    Dividends
                    I am pleased to report that based on the profits earned by the Group during the year the directors have
                    declared the payment of a final fully franked dividend of 3.0 cents per share which will be paid on 29 August
                    2008. This final dividend includes an attributable LIC capital gain of 0.5 cents per share which will enable some
                    shareholders to claim a tax deduction.
                    This brings the total ordinary dividend paid for the year 30th June 2008 to 6.0 cents per share compared to
                    5.3 cents last year, an increase of 13.2%.

                    Earnings per Share and NTA
                    Following the increased capital base resulting from the capital raising initiatives during the year, the earnings per
                    share for the year were 8.01 cents (2007: 6.91 cents) an increase of 15.9%.
                    The Net Tangible Asset Backing (NTA) of the group at 30th June 2008 was $ 1.52 before tax (2007: $1.69) and
                    the after tax Net Asset Backing per share was $1.41 (2007: $1.51).

                    Outlook
                    In these uncertain times where high interest rates, concerns over high inflation and tight credit conditions are
                    contributing to high share market volatility, the $43.6m cash holdings of the group at 30 June 2008 puts it in a
                    very strong position to take advantage of opportunities should they arise in the next financial year.

                    Yours sincerely,
                    Robert Millner
                    Chairman
                    Sydney, 6 August 2008
                                                                                                                                     9
                    2008 Annual Report
                    Brickworks Investment Company Limited




                    DIRECTORS’ REPORT
For personal use only

                    The directors of Brickworks Investment Company Limited present the following report on the Company and its
                    controlled entities (the Group) for the year ended 30 June 2008.

                    1. Directors
                    The following persons were directors since the start of the financial year and up to the date of this report unless
                    otherwise stated:
                    Robert Dobson Millner – Non-Executive Director and Chairman
                    Mr Millner has over 20 years experience as a Company Director. During the past three years, Mr Millner has
                    also served as a director of the following other listed companies:
                        • Milton Corporations Limited*
                        • Choiseul Investments Limited*
                        • New Hope Corporation Limited*
                        • Washington H Soul Pattinson and Company Limited*
                        • SP Telemedia Limited*
                        • Brickworks Limited*
                        • Souls Private Equity Limited*
                        • Australian Pharmaceutical Industries Limited*
                    * denotes current directorship
                    Special Responsibilities:
                        • Chairman of the Board
                        • Chairman of the Remuneration Committee
                        • Chairman of the Nomination Committee
                        • Chairman of the Investment Committee

                    David Capp Hall, FCA, FAICD – Independent Non-Executive Director
                    Mr Hall is a Chartered Accountant with experience in corporate management and finance. He holds
                    directorships in other companies and is the Chairman of the audit committee. During the past three years,
                    Mr Hall also served as a director of the following listed companies:
                        • Undercoverwear Limited
                        • Ainsworth Game Technology Limited
                    Special Responsibilities:
                        • Chairman of the Audit Committee
                        • Member of the Remuneration Committee
                        • Member of the Nomination Committee




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                                                                                                                      2008 Annual Report
                    Brickworks Investment Company Limited




                    DIRECTORS’ REPORT - Continued
For personal use only

                    Alexander James Payne, B.Comm, Dip Cm, FCPA, FCIS, FCIM - Non-Executive Director
                    Mr Payne is chief financial officer of Brickworks Limited and has considerable experience in finance and
                    investment and is a member of the audit committee.
                    Special Responsibilities:
                        • Member of the Audit Committee
                        • Member of the Investment Committee
                        • Member of the Remuneration Committee
                        • Member of the Nomination Committee

                    Geoffrey Guild Hill, B.Econ., MBA, FCPA, ASIA FAICD – Independent Non-Executive Director
                    A merchant banker, Mr Hill has identified and implemented mergers and takeovers and has acted for a wide
                    range of corporate clients in Australia and overseas.
                    During the past three years, Mr Hill has served as a director of the following listed companies:
                        • Huntley Investment Company Limited*
                        • Heritage Gold NZ Limited*
                        • Hills Industries Limited*
                        • Souls Private Equity Limited (alternate director)
                        • Enterprise Energy NL
                        • Biron Capital Limited
                        • Undercoverwear Limited
                    * denotes current directorship
                    Special Responsibilities:
                        • Member of the Audit Committee
                        • Member of the Remuneration Committee
                        • Member of the Nomination Committee

                    2. Company Secretary
                    Richard Pillinger, BSc, CA
                    Mr Pillinger was appointed as Company Secretary of Brickworks Investment Company Limited on 26 March
                    2008. Mr Pillinger is a Chartered Accountant with extensive experience in public practice and commercial
                    financial roles.
                    Mr J de Gouveia resigned as Company Secretary on 15 November 2007. Mr G S Bruce was appointed as
                    temporary Company Secretary on that date and resigned on the appointment of Mr. Pillinger.

                    3. Principal Activities
                    The principal activities of the Group during the financial year were that of a Listed Investment Company (LIC)
                    primarily focused on long term investment in ASX listed securities. There have been no significant changes in
                    the nature of those activities during the year.

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                    Brickworks Investment Company Limited




                    DIRECTORS’ REPORT - Continued
For personal use only

                    4. Operating Results
                    The consolidated profit of the Group after providing for income tax amounted to $22,576,000 (2007: $14,930,000).

                    5. Review of Operations
                    The Australian share market endured a difficult period during the year ending 30 June 2008 as a result of credit
                    issues and high interest rates and oil prices. Despite this, the group enjoyed another successful year with total
                    income from operating activities increasing by 39.37% and overall profits after tax increasing by 51.21%.
                    The investment focus during the year again concentrated on managing the existing portfolio by continuing to
                    add on its existing holdings as well as adding new companies and investment products to its investment
                    portfolio, such as Suncorp-Metway Limited Convertible Preference Shares.
                    In addition, to further increase the investment base a Share Placement was undertaken in September 2007
                    which raised $49.3 million and further strengthens the future earning base of the group.

                    6. Financial Position
                    The net assets of the Group increased during the financial year by $28.5 million to $411.4 million.
                    This movement has largely resulted from the following factors;
                     • Proceeds from share issues raising $51.2 million;
                        • Market value decrease in the investment portfolio of $32.7 million net of tax, and
                        • Retained profits.

                    7. Employees
                    The Group has nil employees as at 30 June 2008 (2007: Nil)

                    8. Significant changes in the state of affairs
                    Other than as stated above and in the accompany Financial Report, there were no significant changes in the
                    state of affairs of the Group during the reporting year.

                    9. Likely Developments and Expected Results
                    The operations of the Group will continue with planned investments in Australian equities and fixed interest
                    securities. The Directors have previously announced that management of the Listed Investment Portfolio will be
                    brought in-house on expiry of the current agreement with their outsourced Investment Manager on 1 December
                    2008. No information is included on the expected results of those operations and the strategy for particular
                    investments, as it is the opinion of the directors that this information would prejudice the interests of the Group
                    if included in this report.

                    10. Significant Events after Balance Date
                    The directors are not aware of any matter or circumstance that has arisen since the end of the year to the date
                    of this report that has significantly affected or may significantly affect:
                    i. the operations of the Company and the entities that it controls
                    ii. the results of those operations; or
                    iii. the state of affairs of the Company in subsequent years

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                                                                                                                      2008 Annual Report
                    Brickworks Investment Company Limited




                    DIRECTORS’ REPORT - Continued
For personal use only

                    11. Dividends
                    There were two dividend payments during the year ended 30 June 2008.
                    On 31 August 2007, a final ordinary dividend of $6,810,690 (2.7 cents per share fully franked) was paid out of
                    retained profits at 30 June 2007.
                    On 7 March 2008, an interim ordinary dividend of $8,615,012 (3.0 cents per share fully franked) was paid out
                    of retained profits at 31 December 2007.
                    In addition, the directors have declared a final ordinary dividend of $ 8,728,998 (3.0 cents per share fully
                    franked) out of retained profits at 30 June 2008 and payable on 29 August 2008.

                    12. Environmental Regulations
                    The Group’s operations are not materially affected by environmental regulations.

                    13. Meetings of Directors
                    The numbers of meetings of the Board of Directors and each board committee held during the year to 30 June
                    2008, and the numbers of meetings attended by each Director were:
                                                 Board                          Investment                          Audit
                                     Attended           Eligible       Attended             Eligible      Attended        Eligible
                                                       to attend                           to attend                     to attend
                        RD Millner       7                 7               12                  12               2            2
                        AJ Payne         7                7                12                 12                2            2
                        DC Hall          7                7                -                   -                2            2
                        GG Hill          7                7                -                   -                2            2

                    14. Remuneration Report
                    Other than the Directors acting in their capacity as directors, the Group had no employees during the year to
                    30 June 2008.
                    Payment to non-executive directors is fixed at $300,000 until shareholders, by ordinary resolution, approve
                    some other fixed sum amount. This amount is to be divided amongst the Directors as they may determine.
                    These fees exclude any additional fee for any service based agreement which may be agreed from time to
                    time, and also excludes statutory superannuation and the reimbursement of out of pocket expenses.
                    Details of the nature and amount of each Non – Executive Director’s emoluments from the Parent and
                    controlled entities in respect of the year to 30 June 2008 were:
                                             Primary      Superannuation           Equity                 Other               Total
                                                                                Compensation           Compensation
                                                $                   $                $                      $                  $
                        RD Millner            40,000               3,600             -                      -                43,600
                        DC Hall               30,000               2,700               -                    -                32,700
                        AJ Payne              25,000               2,250               -                    -                27,250
                        GG Hill               25,000               2,250               -                    -                27,250
                        Total                120,000            10,800                 -                    -               130,800
                    There were no retirement allowances provided for the retirement of non-executive directors.
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                    2008 Annual Report
                    Brickworks Investment Company Limited




                    DIRECTORS’ REPORT - Continued
For personal use only

                    15. Beneficial and relevant interest of Directors in Shares of the Company
                    As at the date of this report, details of Directors who hold shares for their own benefit or who have an interest
                    in holdings through a third party and the total number of such shares held are listed as follows:
                                                   Number of Shares
                    RD Millner                                4,905,200
                    DC Hall                                      221,749
                    AJ Payne                                     120,586
                    GG Hill                                      764,367

                    16. Directors and Officers’ Indemnity
                    The Constitution of the Parent provides indemnity against liability and legal costs incurred by Directors and
                    Officers to the extent permitted by Corporations Act.
                    During the year to 30 June 2008, the Group has paid premiums of $33,688 in respect of an insurance contract
                    to insure each of the officers against all liabilities and expenses arising as a result of work performed in their
                    respective capacities.

                    17. Proceedings on Behalf of Group
                    No person has applied for leave of the Court to bring proceedings on behalf of the Group or intervene in any
                    proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Group for all
                    or any part of those proceedings.
                    The Group was not a party to any such proceedings during the year.

                    18. Non-audit Services
                    The board of directors is satisfied that the provision of non-audit services during the year is compatible with the
                    general standard of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied
                    that the services disclosed below did not compromise the external auditor’s independence for the following reasons:
                    • all non-audit services are reviewed and approved by the board of directors prior to commencement to ensure they
                      do not adversely affect the integrity and objectivity of the auditor; and
                    • the nature of the services provided do not compromise the general principles relating to auditor independence as
                      set out in the Institute of Chartered Accountants in Australia and CPA Australia’s Professional Statement F1:
                      Professional Independence.
                    The following fees (inclusive of GST) for non-audit services were paid to the external auditor, Travis & Travis, during
                    the year ended 30 June 2008:
                    Taxation services                   $ 2,090
                                                        $ 2,090

                    19. Auditor’s Independence Declaration
                    The auditor’s independence declaration for the year ended 30 June 2008 has been received and can be found
                    on page 47.
                    This report is made in accordance with a resolution of the directors.
                    Robert D Millner
                    Director
                    Sydney 6 August 2008
                        14
                                                                                                                             2008 Annual Report
                    Brickworks Investment Company Limited




                    CORPORATE GOVERNANCE
For personal use only

                    Brickworks Investment Company Limited (the Group) was incorporated on 17 October 2003 and since that
                    date the Board have been committed to achieving and demonstrating the highest standards of corporate
                    governance. Unless otherwise stated, the Group has followed best practice recommendations set by the ASX
                    Corporate Governance Council during the reporting year
                    The Board of directors (hereinafter referred to as the Board) are responsible for the corporate governance of the
                    Parent and its controlled entities. The directors of the Parent and its controlled entities are required to act
                    honestly, transparently, diligently, independently, and in the best interests of all shareholders in order to increase
                    shareholder value.
                    The directors are responsible to the shareholders for the performance of the Group in both the short and the
                    longer term and seek to balance sometimes competing objectives in the best interests of the Group as a
                    whole. Their focus is to enhance the interests of shareholders and other key stakeholders and to ensure the
                    Group is properly managed.
                    The Group’s main corporate governance practices in place throughout the year are discussed in this section.

                    The Board of Directors
                    The Board operates in accordance with the broad principles set out in its charter.

                    Role of the Board
                    The responsibilities of the board include:
                        I contributing to the development of and approving the corporate strategy
                        I reviewing and approving business results, business plans, the annual budget and financial plans
                        I organisation and monitoring the investment portfolio
                        I ensuring regulatory compliance
                        I reviewing internal controls
                        I ensuring adequate risk management processes
                        I monitoring the Board composition, director selection and Board processes and performance
                        I overseeing and monitoring:
                            - organisational performance and the achievement of the Group’s strategic goals and objectives
                            - compliance with the Group’s code of conduct
                        I   monitoring financial performance including approval of the annual report and half-year financial reports
                            and liaison with the Group’s auditors
                        I   appointment and contributing to the performance assessment of the portfolio manager and other
                            external service providers
                        I   enhancing and protecting the reputation of the Group
                        I   reporting to shareholders.

                    The terms and conditions of appointment and retirement of new directors are set out in a formal letter of
                    appointment that includes:
                        I   term of the appointment
                        I   powers and duties
                        I   determination of remuneration
                        I   dealings in the Group securities including notification requirements
                        I   conflicts of interest and disclosure policies
                        I   indemnity and insurance arrangements
                        I   access to independent professional advice
                        I   review of appointment.

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                    2008 Annual Report
                    Brickworks Investment Company Limited




                    CORPORATE GOVERNANCE - Continued
For personal use only

                    Board Composition
                    The key elements of the Board composition include:
                        I ensuring, where practicable to do so, that a majority of the Board are independent directors
                        I the Board of the Group currently comprises 2 independent non-executive directors and 2 non-executive
                             directors
                        I non-executive directors bring a fresh perspective to the board’s consideration of strategic, risk and
                          performance matters and are best placed to exercise independent judgement and review and
                          constructively challenge the performance of management
                        I the Group is to maintain a mix of directors on the Board from different backgrounds with complimentary
                          skills and experience
                        I the Board seeks to ensure that:
                          - at any point in time, its membership represents an appropriate balance between directors with
                            experience and knowledge of the Group and directors with an external perspective
                          - the size of the Board is conducive to effective discussion and efficient decision making.
                        I in recognition of the importance placed on the investment experience of the directors and the Board’s
                          role in supervising the activities of the portfolio manager, the majority of the Board are not independent
                          directors. Refer discussion detailed under “Directors’ Independence” on page 17.
                    Details of the members of the Board, their experience, expertise, qualifications and independent status are set
                    out in the directors’ report under the heading “Directors”.

                    Term of Office
                    The Company’s Constitution specifies that all directors must retire from office no later than the third annual
                    general meeting (AGM) following their last election. Where eligible, a director may stand for re-election in
                    accordance with the Company’s Constitution.

                    Chairman
                    The Chairman is a non-executive director who is responsible for leading the Board, ensuring directors are
                    properly briefed in all matters relevant to their role and responsibilities, facilitating Board discussions and
                    managing the Board’s relationship with external service providers.

                    Board Meetings
                    Details of directors’ attendance at Board meetings are set out in the Directors’ Report on page 13.
                    The Board meets formally at least 6 times a year. In addition, it meets whenever necessary to deal with
                    specific matters needing attention between the scheduled meetings.
                    Meeting agendas are established by the Chairman and Company Secretary to ensure adequate coverage of
                    financial, strategic, compliance and other major areas throughout the year.
                    Copies of Board papers are circulated in advance of meetings. Directors are always encouraged to
                    participate with a robust exchange of views and to bring their independent judgment to bear on the issues
                    and decisions at hand. The Board highly values its relationship with the portfolio manager which is based on
                    openness and trust.




                        16
                                                                                                                        2008 Annual Report
                    Brickworks Investment Company Limited




                    CORPORATE GOVERNANCE - Continued
For personal use only

                    Performance Assessment
                    The Board undertakes an annual self assessment of its collective performance. The results and any action
                    plans are documented together with specific performance goals which are agreed for the coming year. The self
                    assessment:
                        I compares the performance of the Board with the requirements of it’s Charter
                        I sets forth the goals and objectives of the Board for the upcoming year
                        I effects any improvements to the Board charter deemed necessary or desirable.
                    The performance evaluation is conducted in such manner as the Board deems appropriate. In addition, each
                    Board committee undertakes an annual self assessment on the performance of the committee and
                    achievement of committee objectives.
                    The Chairman annually assesses the performance of individual directors, where necessary and meets privately
                    with each director to discuss this assessment. The Chairman’s performance is reviewed by the Board.

                    Directors’ Independence
                    Assessing the independence of directors is undertaken in accordance with the best practice recommendations
                    released by the Australian Stock Exchange Corporate Governance Council in March 2003.
                    When assessing the independence of directors and the Chairman under recommendation 2.1 and 2.2 of the
                    best practice recommendations released by the Australian Stock Exchange Corporate Governance Council,
                    both Mr Millner and Mr Payne, although meeting other criteria, and bringing independent judgement to bear on
                    their respective roles, are both not defined as independent directors, primarily due to the fact that both Messrs
                    Millner and Payne are officers of Brickworks Limited, which is a substantial shareholder of the Parent. The
                    Group has not followed recommendation 2.1 and 2.2 due to the following reasons;
                        I The Board are of the opinion that all directors exercise and bring to bear an unfettered and independent
                           judgement towards their duties. Brickworks Investment Company Limited listed on the Australian Stock
                           exchange on 12 December 2003 to take over the investment portfolio of Brickworks Limited and the
                           Board is satisfied that both Messrs Millner and Payne play an important role in the continued success
                           and performance of the portfolio.
                    In relation to director independence, materiality is determined on both quantitative and qualitative bases. An
                    amount of over 5% of annual turnover of the Group is considered material. In addition, a transaction of any
                    amount or a relationship is deemed material if knowledge of it impacts the shareholders’ understanding of the
                    director’s performance.

                    Avoidance of conflicts of interests of Directors
                    In accordance with the Corporations Act 2001 (Cth), any director with a material personal interest in a matter
                    being considered by the Board must not be present when the matter is being considered, and may not vote
                    on the matter.

                    Independent Professional Advice
                    Directors and board committees have the right, in connection with their duties and responsibilities, to seek
                    independent professional advice at the Parent’s expense. Prior approval of the Chairman is required, but this
                    will not be unreasonably withheld.




                                                                                                                                 17
                    2008 Annual Report
                    Brickworks Investment Company Limited




                    CORPORATE GOVERNANCE - Continued
For personal use only

                    Corporate Reporting
                    The portfolio manager and the administrative and company secretarial service provider, namely Souls Funds
                    Management Ltd and Corporate & Administrative Services Pty Ltd have made the following certifications to
                    the Board:
                        I that the Group’s financial reports are complete and present a true and fair view, in all material respects,
                          of the financial condition and operational results of the Parent and its consolidated entities in accordance
                          with all mandatory professional reporting requirements
                        I that the above statement is founded on a sound system of internal control and risk management which
                          implements the policies adopted by the Board and that the Group’s risk management and internal
                          control is operating effectively and efficiently in all material respects.
                    The Group adopted this reporting structure for the year ended 30 June 2008.

                    Board Committees
                    The Board has established a number of committees to assist in the execution of its duties and to allow detailed
                    consideration of complex issues. Current committees of the Board are the investment committee, nomination
                    committee, the remuneration committee and audit committee. The committee’s structure and membership is
                    reviewed on an annual basis. All matters determined by committees are submitted to the full Board as
                    recommendations for Board decisions.

                    Investment Committee
                    The Group has established an Investment Committee effective from 12 December 2003.
                    The investment committee consists of the following members:
                    RD Millner (Chairman)
                    AJ Payne
                    Details of these directors’ qualifications, experience and attendance at investment committee meetings held
                    during the year are set out in the Directors’ Report on pages 10-14.
                    The main responsibilities of the committee are to:
                        I assess the information and recommendations received from the portfolio manager regarding the present
                             and future investment needs of the Group
                        I assess the performance of the portfolio manager
                        I evaluating investment performance.

                    Nomination Committee
                    The Group has embraced the best practice recommendations released by the Australian Stock Exchange
                    Corporate Governance Council in March 2003 and established a Nominations Committee effective from
                    12 December 2003.
                    The nomination committee consists of the following members:
                    RD Millner (Chairman)
                    DC Hall
                    AJ Payne
                    GG Hill
                    Details of these directors’ qualifications and experience are set out in the Directors’ Report on page 10-14.


                        18
                                                                                                                      2008 Annual Report
                    Brickworks Investment Company Limited




                    CORPORATE GOVERNANCE - Continued
For personal use only

                    Nomination Committee (continued)
                    The main responsibilities of the committee are to:
                        I assess the membership of the Board having regard to present and future needs of the Group
                        I assess the independence of directors to ensure the majority of the Board are independent directors
                        I propose candidates for Board vacancies in consideration of qualifications, experience and domicile
                        I oversee board succession
                        I evaluating Board performance.
                    New directors are provided with a letter of appointment setting out their responsibilities, rights and the terms
                    and conditions of their employment.
                    The nominations committee charter provides guidance for the selection and appointment of new directors.

                    Audit Committee
                    The members of the audit committee at the date of this annual financial report are:
                    DC Hall (Chairman)
                    AJ Payne
                    GG Hill
                    RD Millner – resigned 10 June 2008
                    Details of these directors’ qualification, experience and attendance at audit committee meetings are set out in
                    the Directors’ Report on page 10-14.
                    The audit committee operates in accordance with a charter.
                    The Chairman of the audit committee is an independent, non-executive director. The Chairman of the Audit
                    Committee is also required to have accounting or related financial expertise, which includes past employment,
                    professional qualification or other comparable experience. The other members of the audit committee are all
                    financially literate and have a strong understanding of the industry in which the Group operates.
                    The audit committee’s role and responsibilities, composition, structure and membership requirements are
                    documented in an audit committee charter, which has been approved by the Board and is reviewed annually.
                    The main responsibilities of the committee are to:
                        I review, assess and approve the annual report, half-year financial report and all other financial information
                          published by the Group or released to the market
                        I reviewing the effectiveness of the organisation’s internal control environment covering:
                          - effectiveness and efficiency of operations
                          - reliability of financial reporting
                          - compliance with applicable laws and regulations.
                        I oversee the effective operation of the risk management framework
                        I recommend to the Board the appointment, removal and remuneration of the external auditors, and
                           review the terms of their engagement, the scope and quality of the audit and assess performance and
                           consider the independence and competence of the external auditor on an ongoing basis. The Audit
                           Committee receives certified independence assurances from the external auditors




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                    Brickworks Investment Company Limited




                    CORPORATE GOVERNANCE - Continued
For personal use only

                    Audit Committee (continued)
                      I review and approve the level of non-audit services provided by the external auditors and ensure it does
                          not adversely impact on auditor independence. The external auditor will not provide services to the
                          Group where the auditor would have a mutual or conflicting interest with the Group; be in a position
                          where they audit their own work; function as management of the Group; or have their independence
                          impaired or perceived to be impaired in any way.
                      I review and monitor related party transactions and assess their priority
                      I report to the Board on matters relevant to the committee’s role and responsibilities
                    In accordance with the audit committee charter, the Group requires that the external audit engagement partner
                    and review partner be rotated every five years. In accordance with that policy, a new external audit firm will be
                    appointed for the year ending 30 June 2009.
                    The external auditor will attend the annual general meeting and be available to answer shareholder questions
                    about the conduct of the audit and the preparation and content of the audit report.
                    In fulfilling its responsibilities, the audit committee requires the portfolio manager and the administrative and
                    company secretarial service provider, namely Souls Funds Management Ltd and Corporate & Administrative
                    Services Pty Ltd to state in writing to the Board that the Group’s financial reports presents a true and fair view,
                    in all material respects, of the Parent’s and its consolidated entities financial condition, operational results and
                    are in accordance with the relevant accounting standards.
                    The portfolio manager and the administrative and company secretarial service provider, namely Souls Funds
                    Management Ltd and Corporate & Administrative Services Pty Ltd are invited to attend meetings at the
                    discretion of the audit committee.

                    Remuneration Committee & Policies
                    The Group has embraced the best practice recommendations released by the Australian Stock Exchange
                    Corporate Governance Council in March 2003 and established a Remuneration Committee effective from
                    12 December 2003.
                    The remuneration committee consists of the following members:
                    RD Millner (Chairman)
                    DC Hall
                    AJ Payne
                    GG Hill
                    Details of these directors’ qualifications and experience are set out in the Directors’ Report on page 10-14.
                    The Remuneration Committee oversees and reviews remuneration packages and other terms of employment
                    for executive management (if any). In undertaking their roles the Committee members consider reports from
                    external remuneration experts on recent developments on remuneration and related matters.
                    The Group does not have any employees due to the nature of its business and the use of external service
                    providers. If the use of external service providers was to change in the future, any person engaged in an
                    executive capacity would be required sign a formal employment contract at the time of their appointment
                    covering a range of matters including their duties, rights, responsibilities, and any entitlements on termination.
                    In such circumstances, executive remuneration and other terms of employment would also be reviewed annually
                    by the committee having regard to personal and corporate performance, contribution to long term growth,
                    relevant comparative information and independent expert advice. As well as a base salary, remuneration in such
                    circumstances could be expected to include superannuation, performance-related bonuses and fringe benefits.




                        20
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                    CORPORATE GOVERNANCE - Continued
For personal use only

                    Remuneration Committee & Policies (continued)
                    Fees for non-executive directors reflect the demands on and responsibilities of our directors. Non-executive
                    directors are remunerated by way of base fees and statutory superannuation contributions and do not
                    participate in schemes designed for the remuneration of executives. Non-executive directors do not receive any
                    options, bonus payments nor are provided with retirement benefits other than statutory superannuation.
                    Further information on directors’ and executives’ remuneration is set out in the directors’ report and note 20 to
                    the financial statements.
                    The Remuneration Committee’s terms of reference include responsibility for reviewing any transactions between
                    the organisation and the directors, or any interest associated with the directors, to ensure the structure and
                    terms of the transaction are in compliance with the Corporations Act 2001 and are appropriately disclosed.
                    The remuneration committee operates in accordance with a charter.

                    Corporate Governance Framework
                    The Board is committed to the highest standards of corporate governance, which it requires as fundamental to
                    all its activities.
                    External service providers are required to provide a Corporate Governance Declaration (the Declaration) to the
                    Board on an annual basis.
                    External service providers are required to confirm in the annual Statements that to the best of their knowledge
                    and belief and having made appropriate inquiries of their own staff and consultants regarding the Parent and its
                    controlled entities (the Group) that, in the interests of directors, shareholders and other key stakeholders the
                    service provider has applied corporate governance practices mandated by the Board at all times.
                    The Declaration covers the following:
                        I disclosure of the Groups’ operations in the Board meeting papers.
                        I satisfaction of all matters arising from prior Board meetings
                        I the maintenance of financial records that correctly record and explain the Group’s transactions and
                          financial position and performance to enable true and fair financial statements to be prepared and
                          audited or reviewed in accordance with all applicable Accounting Standards and other mandatory
                          professional reporting requirements
                        I compliance with statutory and prudential obligations and details of all lodgements in accordance with
                          these obligations
                        I maintenance of ethical conduct by execution of duties with the utmost integrity, objectivity and
                          professionalism at all times
                        I notification to the Company Secretary of all purchases and sales of company securities, directly and
                          indirectly and disclosure in the Board papers.

                    Risk Management
                    The Board is committed to the identification and quantification of risk throughout the Group’s operations.
                    Considerable importance is placed on maintaining a strong control environment. There is an organisational
                    structure with clearly drawn lines of accountability. Adherence to the code of conduct is required at all times
                    and the Board actively promotes a culture of quality and integrity.
                    Management of investment risk is fundamental to the business of the Group being an investor in Australian
                    listed securities. Details of investment risk management policies are held by the portfolio manager.
                    The Board operates to minimise its exposure to investment risk, in part, by implementing stringent processes
                    and procedures to effectively manage investment risk.

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                    CORPORATE GOVERNANCE - Continued
For personal use only

                    Code of Conduct
                    The Group has developed a Code of Conduct (the Code) which has been fully endorsed by the Board and
                    applies to all directors and external service providers and their employees. The code is regularly reviewed and
                    updated as necessary to ensure it reflects the highest standards of behaviour and professionalism and the
                    practices necessary to maintain confidence in the Group’s integrity.
                    In summary, the Code requires that at all times all Group personnel act with the utmost integrity, objectivity and
                    in compliance with the letter and the spirit of the law and company policies.
                    The Group has developed a Share Trading Policy which has been fully endorsed by the Board and applies to all
                    directors and employees.

                    Share Trading Policy
                    Directors, executives and employees may deal in company securities; however they may not do so if in
                    possession of information which is price sensitive or likely to be price sensitive to the security’s market price.
                    Changes in a Director’s interest are required to be advised to the Group within 3 days for notification to the ASX.
                    The directors are satisfied that the Group has complied with its policies on ethical standards, including trading
                    in securities.

                    Continuous Disclosure and Shareholder Communication
                    The Chairman and Company Secretary have been nominated as being the persons responsible for
                    communications with the Australian Stock Exchange (ASX). This role includes the responsibility for ensuring
                    compliance with the continuous disclosure requirements in the ASX listing rules and overseeing and co-
                    ordinating information disclosure to ASX. The Chairman is responsible for disclosure to analysts, brokers and
                    shareholders, the media and the public.
                    The Parent has written policies and procedures on information disclosure that focus on continuous disclosure
                    of any information concerning the Group that a reasonable person would expect to have a material effect on
                    the price of the Company’s securities.
                    All information disclosed to the ASX is available on the ASX’s website within 24 hours of the release to the ASX.
                    Procedures have been established for reviewing whether price sensitive information has been inadvertently
                    disclosed, and if so, this information is also immediately released to the market.
                    All shareholders receive a copy of the Group’s full annual report. Shareholders also are updated with the
                    Group’s operations via monthly ASX announcements of the net tangible asset (NTA) backing of the portfolio
                    and other disclosure information. All recent ASX announcements and annual reports are available on the ASX
                    website, or alternatively, by request via email, facsimile or post.




                        22
                                                                                                                       2008 Annual Report
                    Brickworks Investment Company Limited




                    CONSOLIDATED INCOME STATEMENT
For personal use only

                    FOR THE YEAR ENDED 30 JUNE 2008

                                                                                               Consolidated               Parent
                                                                                          30/06/08   30/06/07      30/06/08   30/06/07
                                                                                Note         $’000      $’000         $’000      $’000

                        Revenue from investment portfolio                                    18,277       14,276     18,277     14,276
                        Revenue from bank deposits                                             3,731       1,505      3,731      1,421
                        Other income                                                                 5       14           5           -
                        Income from operating activities before net
                        gains on investment portfolio                             2          22,013       15,795     22,013     15,697
                        Operating expenses                                        3            2,006       1,671      2,005      1,670

                        Operating profit before income tax expense
                        and net gains on investment portfolio                                20,007       14,124     20,008     14,027
                        Income tax expense                                        4            (819)       (104)       (819)       (75)
                        Net operating profit before net gains on
                        investment portfolio                                                 19,188       14,020     19,189     13,952
                        Gains on investment portfolio                                          4,625       1,300      4,625      1,300
                        Tax expense relating to net realised gains on
                        investment portfolio                                      4          (1,237)       (390)     (1,237)     (390)
                        Net gains on investment portfolio                                      3,388        910       3,388       910
                        Profit for the year attributable to members
                        of the Company                                                       22,576       14,930     22,577     14,862




                                                                                               2008        2007
                                                                                              Cents        Cents

                        Basic earnings per share                                 18                8.01     6.91
                        Diluted earnings per share                               18                8.01     6.91




                    This Income Statement should be read in conjunction with the accompany notes

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                    2008 Annual Report
                    Brickworks Investment Company Limited




                    CONSOLIDATED BALANCE SHEET
For personal use only

                    AS AT 30 JUNE 2008

                                                                                                Consolidated                Parent
                                                                                           30/06/08   30/06/07       30/06/08   30/06/07
                                                                                Note          $’000      $’000          $’000      $’000

                        CURRENT ASSETS
                        Cash and cash equivalents                                  6          43,645        51,547     43,642       51,543
                        Trade and other receivables                                7               4,413     2,782      4,413        2,896
                        Prepayments                                                                  15        16          15            17
                        Total Current Assets                                                  48,073        54,345     48,070       54,456

                        NON-CURRENT ASSETS
                        Investment portfolio                                       8         394,001       371,491    489,387     466,877
                        Deferred tax assets                                        9                498      1,050        497        1,074
                        Total Non-Current Assets                                             394,499       372,541    489,884     467,951
                        Total Assets                                                         442,572       426,886    537,954     522,407

                        CURRENT LIABILITIES
                        Trade and other payables                                  10                166       170         166          170
                        Current tax liabilities                                   11                172          -        172              -
                        Total Current Liabilities                                                   338       170         338          170

                        NON-CURRENT LIABILITIES
                        Trade and other payables                                  10                   -         -     96,460       96,600
                        Deferred tax liabilities                                  12          30,811        43,777     30,811       43,777
                        Total Non-Current Liabilities                                         30,811        43,777    127,271     140,377
                        TOTAL LIABILITIES                                                     31,149        43,947    127,609     140,547
                        NET ASSETS                                                           411,423       382,939    410,345     381,860

                        EQUITY
                        Share capital                                             13         322,915       268,834    322,915     268,834
                        Revaluation reserve                                       14          67,381       100,128     69,333     102,080
                        Realised capital gains reserve                            15               6,048     2,660      6,048        2,660
                        Retained profits                                          16          15,079        11,317     12,049        8,286
                        Total Equity                                                         411,423       382,939    410,345     381,860




                    This Balance Sheet should be read in conjunction with the accompanying notes

                         24
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                    Brickworks Investment Company Limited




                    CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For personal use only

                    FOR THE YEAR ENDED 30 JUNE 2008

                                                                                                Consolidated                       Parent
                                                                                           30/06/08   30/06/07              30/06/08   30/06/07
                                                                                 Note         $’000      $’000                 $’000      $’000

                        Total equity at the beginning of the year                            382,939         275,332         381,860    274,321
                        Dividends paid                                           5 (a)       (15,426)        (12,733)        (15,426)   (12,733)
                        Issue of capital:
                        - dividend reinvestment plan                            13 (b)          2,644           2,256          2,644      2,256
                        - rights issue                                          13 (b)                -        56,988               -    56,988
                        - share placement                                       13 (b)         49,300                   -     49,300           -
                        - transaction costs                                     13 (b)         (1,117)              (374)     (1,117)      (374)
                        - share purchase plan                                   13 (b)           3,254                  -      3,254           -

                        Total transactions with equity holders in
                        their capacity as equity holders                                       38,655          46,137         38,655     46,137
                        Revaluation of investment portfolio                                  (46,567)          66,486        (46,567)    66,486
                        Provision for tax on unrealised gains                                  13,820        (19,946)         13,820    (19,946)
                        Net unrealised gains recognised directly
                        in equity                                                 14         (32,747)          46,540        (32,747)    46,540
                        Profit for the year                                                    22,576          14,930         22,577     14,862
                        Total recognised income (including
                        unrealised gains) and expense for the year                           (10,171)          61,470        (10,170)    61,402
                        Total equity at the end of the year                                  411,423         382,939         410,345    381,860




                    This Statement of Changes in Equity should be read in conjunction with the accompanying notes

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                    Brickworks Investment Company Limited




                    CONSOLIDATED CASH FLOW STATEMENT
For personal use only

                    FOR THE YEAR ENDED 30 JUNE 2008

                                                                                               Consolidated                    Parent
                                                                                          30/06/08   30/06/07           30/06/08   30/06/07
                                                                                Note         $’000      $’000              $’000      $’000

                        Cash flows from operating activities
                        Payments to suppliers and employees                                  (2,257)      (1,797)         (2,256)      (1,785)
                        Other receipts in the course of operations                               269          74             269            60
                        Dividends and distributions received                                 17,461       13,919          17,461       13,919
                        Interest received                                                      3,736       1,333           3,736        1,249
                        Income tax refund                                                            -       884                -         141
                        Net cash inflow from operating activities               17 (a)       19,209       14,413          19,210       13,584

                        Cash flows from investing activities
                        Payment for non current investments                                 (75,606)     (34,219)        (75,606)     (34,219)
                        Proceeds from sale of non current investments                        10,321        2,697          10,321        2,697
                        Net cash (outflow) from investing activities                        (65,285)     (31,522)        (65,285)    (31,522)

                        Cash flows from financing activities
                        Proceeds from issues of ordinary shares                              50,957       56,463          50,957       56,463
                        Proceeds from borrowings                                                     -              -           -       4,050
                        Dividends paid                                          5 (a)       (12,783)     (10,477)        (12,783)    (10,477)


                        Net cash inflow from financing activities                            38,174       45,986          38,174       50,036


                        Net (decrease)/increase in cash held                                 (7,902)      28,877          (7,901)      32,098
                        Cash at the beginning of the year                                    51,547       22,670          51,543       19,445
                        Cash at the end of the year                               6          43,645       51,547          43,642       51,543




                    This Cash Flow Statement should be read in conjunction with the accompanying notes

                         26
                                                                                                                               2008 Annual Report
                    Brickworks Investment Company Limited




                    NOTES TO THE FINANCIAL STATEMENTS
For personal use only

                    FOR THE YEAR ENDED 30 JUNE 2008

                    1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
                    The financial report is a general purpose financial report that has been prepared in accordance with Australian
                    Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the
                    Australian Accounting Standards Board and the Corporations Act 2001.
                    The financial report covers the parent entity of Brickworks Investment Company Limited and controlled entities,
                    and Brickworks Investment Company Limited as an individual parent entity. Brickworks Investment Company
                    Limited is a listed public company, incorporated and domiciled in Australia.
                    The financial report of Brickworks Investment Company Limited and controlled entities, and Brickworks
                    Investment Company Limited as an individual parent entity comply with all International Financial Reporting
                    Standards (IFRS) in their entirety.
                    The following is a summary of the material accounting policies adopted by the group in the preparation of the
                    financial report. The accounting policies have been consistently applied, unless otherwise stated.
                    Basis of Preparation
                    The accounting policies set out below have been consistently applied to all years presented.
                    Reporting Basis and Conventions
                    The financial report has been prepared on an accruals basis and is based on historical costs modified by the
                    revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis
                    of accounting has been applied.
                    Accounting Policies
                    a.     Principles of Consolidation
                           A controlled entity is any entity Brickworks Investment Company Limited has the power to control the
                           financial and operating policies of so as to obtain benefits from its activities.
                           A list of controlled entities is contained in Note 22 to the financial statements. All controlled entities have
                           a June financial year-end.
                           All inter-company balances and transactions between entities in the group, including any unrealised
                           profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been
                           changed where necessary to ensure consistencies with those policies applied by the parent entity.
                           Where controlled entities have entered or left the group during the year, their operating results have been
                           included/excluded from the date control was obtained or until the date control ceased.
                           Minority equity interests in the equity and results of the entities that are controlled are shown as a
                           separate item in the consolidated financial report.
                    b.     Income Tax
                           The charge for current income tax expense is based on the profit for the year adjusted for any non-
                           assessable or disallowed items. It is calculated using the tax rates that have been enacted or are
                           substantially enacted by the balance sheet date.
                           Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences
                           arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements.
                           No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a
                           business combination, where there is no effect on accounting or taxable profit or loss.




                                                                                                                                      27
                    2008 Annual Report
                    Brickworks Investment Company Limited




                    NOTES TO THE FINANCIAL STATEMENTS
For personal use only

                    FOR THE YEAR ENDED 30 JUNE 2008 (continued)

                    1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
                    b.        Income Tax (continued)
                              Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised
                              or liability is settled. Deferred tax is credited in the income statement except where it relates to items that
                              may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.
                              Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be
                              available against which deductible temporary differences can be utilised.
                              The amount of benefits brought to account or which may be realised in the future is based on the
                              assumption that no adverse change will occur in income taxation legislation and the anticipation that the
                              group will derive sufficient future assessable income to enable the benefit to be realised and comply with the
                              conditions of deductibility imposed by the law.
                              Brickworks Investment Company Limited and its wholly-owned Australian subsidiaries have formed an
                              income tax consolidated group under the tax consolidation regime. Each entity in the group recognises its
                              own current and deferred tax liabilities, except for any deferred tax liabilities resulting from unused tax losses
                              and tax credits, which are immediately assumed by the parent entity. The current tax liability of each group
                              entity is then subsequently assumed by the parent entity. The group notified the Australian Tax Office that it
                              had formed an income tax consolidated group to apply from 12 December 2003. The tax consolidated
                              group has entered a tax sharing agreement whereby each group in the group contributes to the income tax
                              payable in proportion to their contribution to the net profit before tax of the tax consolidated group.
                    c.        Financial Instruments
                              Recognition
                              Financial instruments are initially measured at cost on trade date, which includes transaction costs, when
                              the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are
                              measured as set out below.
                              Financial assets at fair value through income
                              A financial asset is classified in this category if acquired principally for the purpose of selling in the short
                              term or if so designated by management and within the requirements of AASB 139: Recognition and
                              Measurement of Financial Instruments. Derivatives are also categorised as held for trading unless they
                              are designated as hedges. Realised and unrealised gains and losses arising from changes in the fair
                              value of these assets are included in the income statement in the period in which they arise.
                              Loans and receivables
                              Loans and receivables are non-derivative financial assets with fixed or determinable payments that are
                              not quoted in an active market and are stated at amortised cost using the effective interest rate method.
                              Held-to-maturity investments
                              These investments have fixed maturities, and it is the group’s intention to hold these investments to
                              maturity. Any held-to-maturity investments held by the group are stated at amortised cost using the
                              effective interest rate method.
                              Available-for-sale financial assets
                              Available-for-sale financial assets include any financial assets not included in the above categories.
                              Available-for-sale financial assets are reflected at fair value. Unrealised gains and losses arising from
                              changes in fair value are taken directly to equity.
                              Fair value
                              Fair value is determined based on current bid prices for all quoted investments.

                         28
                                                                                                                               2008 Annual Report
                    Brickworks Investment Company Limited




                    NOTES TO THE FINANCIAL STATEMENTS
For personal use only

                    FOR THE YEAR ENDED 30 JUNE 2008 (continued)

                    1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
                    d.     Impairment of Assets
                           At each reporting date, the group reviews the carrying values of its tangible and intangible assets to
                           determine whether there is any indication that those assets have been impaired. If such an indication
                           exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell
                           and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over
                           its recoverable amount is expensed to the income statement.
                    e.     Cash and Cash Equivalents
                           Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term
                           highly liquid investments with original maturities of 12 months or less, and bank overdrafts. Bank
                           overdrafts are shown within short-term borrowings in current liabilities on the balance sheet.
                    f.     Revenue
                           Sale of investments occur when the control of the right to equity has passed to the buyer.
                           Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to
                           the financial assets.
                           Dividend revenue is recognised when the right to receive a dividend has been established.
                           Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.
                           All revenue is stated net of the amount of goods and services tax (GST).
                    g.     Goods and Services Tax (GST)
                           Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of
                           GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is
                           recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables
                           and payables in the balance sheet are shown inclusive of GST.
                           Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of
                           investing and financing activities, which are disclosed as operating cash flows.
                    h.     Comparative Figures
                           When required by Accounting Standards, comparative figures have been adjusted to conform to
                           changes in presentation for the current financial year.
                    i.     Rounding of Amounts
                           The parent has applied the relief available to it under ASIC Class Order 98/100 and accordingly, amounts
                           in the financial report and directors’ report have been rounded off to the nearest $1,000.
                    Critical Accounting Estimates and Judgments
                    The preparation of this financial report requires the use of certain critical estimates based on historical
                    knowledge and best available current information. This requires the directors and management to exercise their
                    judgement in the process of applying the Group’s accounting policies.
                    The carrying amounts of certain assets and liabilities are often determined based on estimates and
                    assumptions of future events. In accordance with AASB 112: Income Taxes deferred tax liabilities have been
                    recognised for Capital Gains Tax on unrealised gains in the investment portfolio at the current tax rate of 30%.
                    As the Group does not intend to dispose of the portfolio, this tax liability may not be crystallised at the amount disclosed
                    in Note 12. In addition, the tax liability that arises on disposal of those securities may be impacted by changes in tax
                    legislation relating to treatment of capital gains and the rate of taxation applicable to such gains at the time of disposal.

                                                                                                                                            29
                    2008 Annual Report
                    Brickworks Investment Company Limited




                    NOTES TO THE FINANCIAL STATEMENTS
For personal use only

                    FOR THE YEAR ENDED 30 JUNE 2008 (continued)

                    1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
                    Critical Accounting Estimates and Judgments (continued)
                    Apart from this, there are no other key assumptions or sources of estimation uncertainty that have a risk of causing
                    a material adjustment to the carrying amount of certain assets and liabilities within the next reporting period.
                    Australian Accounting Standards not yet effective
                    The Group has not yet applied any Australian Accounting Standards or Australian Accounting Interpretations
                    that have been issued as at balance date but are not yet mandatory for the year ended 30 June 2008. The
                    impact of these new standards and interpretations has been assessed and is set out below:
                    1. Revised AASB 101 Presentation of Financial Statements and AASB 2007-8 Amendments to Australian
                       Accounting Standards arising from AASB 101
                    A revised AASB 101 was issued in September 2007 and is applicable for annual reporting periods beginning
                    on or after 1 January 2009. It requires the presentation of a statement of comprehensive income and makes
                    changes to the statement of changes in equity, but will not affect any of the amounts recognised in the financial
                    statements. If an entity has made a prior period adjustment or has reclassified items in the financial statements,
                    it will need to disclose a third balance sheet (statement of financial position), this one being as at the beginning
                    of the comparative period. The Group intends to apply the revised standard from 1 July 2009.
                    No other non-mandatory standards are considered applicable to the Group.

                    2. REVENUES
                                                                                      Consolidated                    Parent
                                                                                 30/06/08    30/06/07          30/06/08   30/06/07
                                                                                    $’000       $’000             $’000      $’000
                        Rebateable dividends:
                             - other corporations                                   16,410         12,036        16,410         12,036
                        Rebateable dividends - special:
                             - other corporations                                      892           1,556           892         1,556
                        Non - rebateable dividends:
                             - other corporations                                      537             418           537           418
                        Trust distributions:
                             - other corporations                                      289            177           289            177
                        Interest income - bank deposits                              3,731          1,505         3,731          1,421
                        Interest income - notes                                        149             89           149             89
                        Other revenue                                                    5             14             5              -
                        Total Income                                                22,013         15,795        22,013         15,697

                    3. EXPENSES
                        Operating expenses
                        Administration expenses                                        314             255           313           254
                        Employment expense                                             131             131           131           131
                        Professional fees                                              143             153           143           153
                        Management fees                                              1,418           1,132         1,418         1,132
                        Total Expenditure                                            2,006           1,671         2,005         1,670

                         30
                                                                                                                        2008 Annual Report
                    Brickworks Investment Company Limited




                    NOTES TO THE FINANCIAL STATEMENTS
For personal use only

                    FOR THE YEAR ENDED 30 JUNE 2008 (continued)

                    4. TAX EXPENSE
                    The aggregated amount of income tax expense attributable to the year differs from the amounts prima facie
                    payable on profits from ordinary activities. The difference is reconciled as follows:
                                                                                  Consolidated                  Parent
                                                                             30/06/08    30/06/07        30/06/08   30/06/07
                                                                                $’000       $’000           $’000      $’000
                        (a) Operating profit before income tax expense
                            and net gains on investment portfolio              20,007         14,124       20,008       14,027
                        Tax calculated at 30% (2007:30%)                        6,002          4,237        6,002        4,208
                        Tax effect of amounts which are not deductible
                        (taxable) in calculating taxable income:
                        - Franked dividends and distributions received         (5,190)        (4,078)      (5,190)      (4,078)
                        - (Over)/Under provision in prior year                       7           (55)            7         (55)
                        Net tax expense on operating profit before net
                        gains on investments                                      819            104          819           75

                        Net gains on investments                                4,625          1,300        4,625        1,300
                        Tax calculated at 30% (2007: 30%)                       1,388            390        1,388          390
                        Tax effect of:
                        - difference between accounting and tax cost
                          bases for capital gains purposes                       (151)              -        (151)              -
                        Tax expense on net gains on investments                 1,237            390        1,237          390
                        Total Tax expense                                       2,056            494        2,056          465
                        Applicable weighted average effective tax rates          8.3%          3.2%         8.3%          3.0%

                        (b) The components of tax expense comprise:
                        Current tax                                               172               -         172               -
                        Deferred tax                                            1,877            549        1,877          520
                        (Over)/Under provision in prior year                         7           (55)            7         (55)
                                                                                2,056            494        2,056          465




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                    Brickworks Investment Company Limited




                    NOTES TO THE FINANCIAL STATEMENTS
For personal use only

                    FOR THE YEAR ENDED 30 JUNE 2008 (continued)

                    5. DIVIDENDS
                    (a) Dividends paid during the year                                  Consolidated                Parent
                                                                                   30/06/08    30/06/07      30/06/08   30/06/07
                                                                                      $’000       $’000         $’000      $’000
                        Final dividend for the year ended 30 June 2007 of
                        2.7 cents per share (2006: 2.5 cents per share) fully
                        franked at the tax rate of 30%, paid on 31 August 2007        6,811        5,208         6,811        5,208
                        Special dividend for the year ended 30 June 2006 of
                        1.0 cents per share fully franked at the tax rate 30%,
                        paid on 31 August 2006                                            -        2,083              -       2,083
                        Interim dividend for the year ended 30 June 2008 of
                        3.0 cents per share (2007: 2.6 cents per share) fully
                        franked at the tax rate 30%, paid on 7 March 2008             8,615        5,442         8,615        5,442
                        Total                                                       15,426       12,733        15,426        12,733
                        Dividends paid in cash or invested in shares under
                        the dividend reinvestment plan ("DRP")
                        Paid in cash                                                12,783       10,477        12,783        10,477
                        Reinvested in shares via DRP                                  2,643        2,256         2,643        2,256
                        Total                                                       15,426       12,733        15,426        12,733
                        Franking Account Balance
                        Balance of the franking account after allowing for tax
                        payable in respect of the current year's profits and the
                        receipt of dividends recognised as receivables                6,810        5,764         6,810        5,764
                        Impact on the franking account of dividends declared
                        but not recognised as a liability at the end of the
                        financial year (b) below                                    (3,741)       (2,919)      (3,741)       (2,919)
                        Net available                                                 3,069        2,845         3,069        2,845


                    (b) Dividends declared after balance date
                    Since the end of the financial year the directors have declared a final dividend for the year ended 30 June 2008
                    of 3.0 cents per share (2007: final 2.7 cents per share) fully franked at the tax rate of 30%, payable on
                    29 August 2008, but not recognised as a liability at the end of the financial year. The final dividend includes an
                    attributable LIC capital gain of 0.5 cents per share.

                    6. CURRENT ASSETS - CASH AND CASH EQUIVALENTS
                        Cash at bank                                                 2,623       17,547         2,623        17,543
                        Short term bank deposits                                    41,022       34,000        41,019        34,000
                                                                                    43,645       51,547        43,642        51,543




                         32
                                                                                                                     2008 Annual Report
                    Brickworks Investment Company Limited




                    NOTES TO THE FINANCIAL STATEMENTS
For personal use only

                    FOR THE YEAR ENDED 30 JUNE 2008 (continued)

                    7. CURRENT ASSETS - TRADE AND OTHER RECEIVABLES
                                                                                   Consolidated             Parent
                                                                              30/06/08    30/06/07   30/06/08   30/06/07
                                                                                 $’000       $’000      $’000      $’000
                        Dividends receivable                                     2,948       2,370      2,948      2,370
                        Distributions receivable                                   197         110        197        110
                        Interest receivable                                        406         261        406        261
                        Amounts receivable from controlled entities                  -           -          -        114
                        Outstanding settlements                                    833           -        833          -
                        Other receivable                                            29          41         29         41
                                                                                 4,413       2,782      4,413      2,896


                    8. NON CURRENT ASSETS - INVESTMENT PORTFOLIO
                        Listed securities at fair value:
                            - Shares in other corporations                    394,001      371,491   394,001     371,491
                        Shares in controlled entities at cost                       -            -    95,386      95,386
                                                                              394,001      371,491   489,387     466,877

                    9. NON CURRENT ASSETS - DEFERRED TAX ASSETS
                        The deferred tax asset balance comprises the
                        following timing differences and unused tax losses:
                        Transaction costs on equity issues                        489          417       488         416
                        Accrued expenses                                            9            9         9           9
                        Tax losses                                                  -          624         -         649
                                                                                  498        1,050       497       1,074




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                    Brickworks Investment Company Limited




                    NOTES TO THE FINANCIAL STATEMENTS
For personal use only

                    FOR THE YEAR ENDED 30 JUNE 2008 (continued)

                    9. NON CURRENT ASSETS - DEFERRED TAX ASSETS (continued)
                    Movements in deferred assets
                                                                      Credited/                     Tax
                                                                     (Charged)     Credited/     Balances
                                                         Opening     to Income     (Charged)    Transferred      Over    Closing
                                                         Balance     Statement      to Equity        In        Provision Balance
                                                          $'000         $'000         $'000        $'000         $'000    $'000
                        Parent
                        Transaction costs on equity issues    566       (310)          160              -           -          416
                        Accrued expenses                        6          3              -             -           -             9
                        Tax losses                            231        477              -        (114)           55          649
                        Balance as at 30 June 2007            803        170           160         (114)           55        1,074
                        Transaction costs on equity issues    416       (407)          479              -           -          488
                        Accrued expenses                        9           -             -             -           -             9
                        Tax losses                            649       (617)             -          (25)          (7)             -
                        Balance as at 30 June 2008           1,074    (1,024)          479           (25)          (7)         497
                        Consolidated
                        Transaction costs on equity issues    567       (310)          160              -           -          417
                        Accrued expenses                        6          3              -             -           -             9
                        Tax losses                            120        449              -             -          55          624
                        Balance as at 30 June 2007            693        142           160              -          55        1,050
                        Transaction costs on equity issues    417       (407)          479              -           -          489
                        Accrued expenses                        9           -             -             -           -             9
                        Tax losses                            624       (617)             -             -          (7)             -
                        Balance as at 30 June 2008           1,050    (1,024)          479              -          (7)         498


                    10. TRADE AND OTHER PAYABLES
                                                                                       Consolidated                  Parent
                                                                                  30/06/08    30/06/07        30/06/08   30/06/07
                                                                                     $’000       $’000           $’000      $’000
                        Current liabilities
                        Creditors and accruals                                        166            170          166           170
                        Non current liabilities
                        Amount due to controlled entities                                -              -      96,460        96,600


                    11. CURRENT TAX LIABILITIES
                        Provision for income tax                                      172               -         172                  -

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                                                                                                                     2008 Annual Report
                    Brickworks Investment Company Limited




                    NOTES TO THE FINANCIAL STATEMENTS
For personal use only

                    FOR THE YEAR ENDED 30 JUNE 2008 (continued)

                    12. NON CURRENT LIABILITIES - DEFERRED TAX LIABILITIES
                                                                                         Consolidated             Parent
                                                                                    30/06/08    30/06/07   30/06/08   30/06/07
                                                                                       $’000       $’000      $’000      $’000
                        The deferred tax liability balance comprises
                        the following timing differences:
                             Revaluation of investments held                         30,603       43,617    30,603      43,617
                             Non rebateable dividend receivable and
                             interest receivable                                        208          160       208         160
                                                                                     30,811       43,777    30,811      43,777

                        Movements in deferred tax liabilities
                                                                        Credited/                  Tax
                                                                       (Charged)     Credited/  Balances
                                                             Opening   to Income     (Charged) Transferred   Over    Closing
                                                             Balance   Statement      to Equity     In     Provision Balance
                                                              $'000       $'000         $'000     $'000      $'000    $'000
                        Parent
                        Revaluation of investment portfolio 23,063        608          19,946         -         -      43,617
                        Non rebateable dividends
                        receivable and interest receivable       78        82                 -       -         -        160
                        Balance as at 30 June 2007           23,141       690          19,946         -         -      43,777

                        Revaluation of investment portfolio 43,617        806         (13,820)        -         -      30,603
                        Non rebateable dividends
                        receivable and interest receivable      160        48                 -       -         -        208
                        Balance as at 30 June 2008           43,777       854         (13,820)        -         -      30,811


                        Consolidated
                        Revaluation of investment portfolio 23,063        608          19,946         -         -      43,617
                        Non rebateable dividends
                        receivable and interest receivable       78        82                 -       -         -        160
                        Balance as at 30 June 2007           23,141       690          19,946         -         -      43,777

                        Revaluation of investment portfolio 43,617        806         (13,820)        -         -      30,603
                        Non rebateable dividends
                        receivable and interest receivable      160        48                 -       -         -        208
                        Balance as at 30 June 2008           43,777       854         (13,820)        -         -      30,811




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                    Brickworks Investment Company Limited




                    NOTES TO THE FINANCIAL STATEMENTS
For personal use only

                    FOR THE YEAR ENDED 30 JUNE 2008 (continued)

                    13. SHARE CAPITAL
                    The Parent does not have an authorised share capital and the ordinary shares on issue have no par value.
                    (a) Issued and paid-up capital                                 Consolidated                      Parent
                                                                               30/06/08    30/06/07          30/06/08    30/06/07
                                                                                  $’000       $’000             $’000       $’000
                        290,966,594 ordinary shares
                        fully paid(2007: 252,247,770)                           322,915          268,834      322,915      268,834

                    (b) Movement in ordinary shares                                       2008                           2007
                                                                             Number of           $’000      Number of           $’000
                                                                               Shares                         Shares
                        Beginning of the financial year                    252,247,770       268,834       208,324,328     209,964
                        Issued during the year:
                        - share placement                                    34,000,000        49,300                -            -
                        - rights issue                                                -             -       42,213,292      56,988
                        - dividend reinvestment plan                          2,007,442        2,644         1,710,150       2,256
                        - share purchase plan                                 2,711,382         3,254                -            -
                        - less net transaction costs                                          (1,117)                         (374)
                        End of the financial year                          290,966,594       322,915       252,247,770     268,834


                    In September 2007, the Parent issued 34,000,000 fully paid ordinary shares at $1.45 from an ordinary share
                    placement to raise additional funds to expand its investment portfolio.
                    Holders of ordinary shares participate in dividends and the proceeds on a winding up of the parent entity in
                    proportion to the number of shares held.
                    At shareholders meetings each ordinary share is entitled to one vote when a poll is called, otherwise each
                    shareholder has one vote on a show of hands.

                    (c) Capital Management
                    The Group’s objective in managing capital is to continue to provide shareholders with attractive investment
                    returns through access to a steady stream of fully-franked dividends and enhancement of capital invested,
                    with goals of paying an enhanced level of dividends and providing attractive total returns over the medium to
                    long term.
                    The Group recognises that its capital will fluctuate in accordance with market conditions and in order to
                    maintain or adjust the capital structure, may adjust the amount of dividends paid, issue new shares from
                    time-to-time or return capital to shareholders.
                    The Group’s capital consists of shareholders equity plus net debt. The movement in equity is shown in the
                    Consolidated Statement of Changes in Equity. At 30 June 2008 net debt was $ Nil (2007: $Nil).




                         36
                                                                                                                    2008 Annual Report
                    Brickworks Investment Company Limited




                    NOTES TO THE FINANCIAL STATEMENTS
For personal use only

                    FOR THE YEAR ENDED 30 JUNE 2008 (continued)

                    14. REVALUATION RESERVE
                    The Revaluation reserve is used to record increments and decrements on the revaluation of the investment
                    portfolio.
                                                                                     Consolidated                   Parent
                                                                                30/06/08    30/06/07         30/06/08   30/06/07
                                                                                   $’000       $’000            $’000      $’000
                        Balance at the beginning of the year                     100,128         53,588       102,080        55,540
                        Revaluation of investment portfolio                      (32,747)        46,540       (32,747)       46,540
                        Balance at the end of the year                             67,381       100,128         69,333      102,080


                    15. REALISED CAPITAL GAINS RESERVE
                    The Realised capital gains reserve records gains or losses after applicable taxation arising from the disposal of
                    securities in the investment portfolio.
                        Balance at the beginning of the year                        2,660          1,750         2,660         1,750
                        Net gains on investment portfolio transferred
                        from retained profits                                       3,388            910         3,388           910
                        Balance at the end of the year                              6,048          2,660         6,048         2,660


                    16. RETAINED PROFITS
                        Retained profits at the beginning of the year             11,317         10,030         8,286         7,067
                        Net profit attributable to members of the company         22,576         14,930        22,577        14,862
                        Net gains on investment portfolio transferred to
                        realised capital gains reserve                            (3,388)          (910)       (3,388)         (910)
                        Dividends provided for or paid                           (15,426)       (12,733)      (15,426)      (12,733)
                        Retained profits at the end of the year                    15,079        11,317         12,049        8,286




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                    2008 Annual Report
                    Brickworks Investment Company Limited




                    NOTES TO THE FINANCIAL STATEMENTS
For personal use only

                    FOR THE YEAR ENDED 30 JUNE 2008 (continued)

                    17. RECONCILIATION OF CASH FLOW
                                                                                          Consolidated               Parent
                                                                                     30/06/08    30/06/07     30/06/08   30/06/07
                                                                                        $’000       $’000        $’000      $’000
                    (a)      Reconcilation of cash flow from operating
                             activities to operating profit
                        Net Profit from ordinary activities                           22,576       14,930        22,577       14,862
                        Non cash item :
                          - net gains on investment portfolio                         (4,625)      (1,300)       (4,625)      (1,300)
                        Change in assets and liabilities, net of the effects
                        of purchase of subsidiaries
                        (Increase) / Decrease in receivables and prepayments           (797)          348         (797)         (509)
                        Increase / (Decrease) in payables                                 (2)          (58)          (2)          (49)
                        Increase / (Decrease) in deferred tax liabilities                854          690           854          690
                        Increase / (Decrease) in current tax liabilities                 172              -         172              -
                        (Increase) / Decrease in deferred tax assets                   1,031         (197)        1,031         (110)
                        Net cash inflow from operating activities                     19,209       14,413        19,210       13,584

                    (b)       Non-cash financing and investing activities
                              i) Dividend reinvestment plan
                              Under the terms of the dividend reinvestment plan, $2,644,000 (2007: $2,256,182) of dividends were paid
                              via the issue of 2,007,442 shares (2007: 1,710,150)


                    18. EARNINGS PER SHARE
                                                                                                                  Consolidated
                                                                                                              30/06/08   30/06/07
                                                                                                                 $’000      $’000
                        Profit for the year                                                                      22,576       14,930
                        Earnings used in calculating basic and diluted
                        earnings per share                                                                       22,576       14,930

                                                                                                                   2008         2007
                                                                                                              No. ('000)   No. ('000)
                        Weighted average number of ordinary shares used
                        in the calculation of basic and diluted earnings per share                             281,950      216,074
                        Basic earnings per share (cents)                                                           8.01          6.91
                        Diluted earnings per share (cents)                                                         8.01          6.91




                         38
                                                                                                                      2008 Annual Report
                    Brickworks Investment Company Limited




                    NOTES TO THE FINANCIAL STATEMENTS
For personal use only

                    FOR THE YEAR ENDED 30 JUNE 2008 (continued)

                    19. AUDITOR’S REMUNERATION
                                                                                         Consolidated              Parent
                                                                                    30/06/08    30/06/07    30/06/08   30/06/07
                                                                                       $’000       $’000       $’000      $’000
                        Remuneration of the auditor of the parent entity for:
                        (a) Auditing the financial report of the
                            Parent and the controlled entities                           29           29          29              29
                        (b) Taxation services                                             2            7           2               7
                        (c) Due diligence investigations                                  -            2           -               2
                                                                                         31           38          31              38


                    20. DIRECTORS REMUNERATION
                    Payment to non-executive directors is fixed at $300,000 until shareholders, by ordinary resolution, approve
                    some other fixed sum amount. This amount is to be divided amongst the Directors as they may determine.
                    These fees exclude any additional fee for any service based agreement which may be agreed from time to
                    time, and also excludes statutory superannuation and the reimbursement of out of pocket expenses.
                    Details of the nature and amount of each Non – Executive Director’s emoluments from the Parent and
                    controlled entities in respect of the year to 30 June 2008 were:
                                                                                   Equity            Other
                                          Primary     Superannuation            Compensation      Compensation   Total
                                             $              $                        $                 $           $
                        RD Millner        40,000          3,600                      -                 -        43,600
                        DC Hall           30,000          2,700                      -                 -        32,700
                        AJ Payne          25,000          2,250                      -                 -        27,250
                        GG Hill           25,000          2,250                      -                 -        27,250
                        Total            120,000         10,800                      -                 -       130,800

                    There were no retirement allowances provided for the retirement of non-executive directors.

                                                                                          2008             2007
                                                                                            $                $
                        Income paid or payable, or otherwise made available to
                        Non-Executive Directors of the consolidated entity in
                        connection with managing the affairs of the Parent and
                        controlled entities
                        Fees                                                            120,000         120,000
                        Superannuation Guarantee amounts                                 10,800          10,800
                                                                                        130,800         130,800


                    Other than the Directors acting in their capacity as directors, the Group had no employees during the year to
                    30 June 2008.


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                    2008 Annual Report
                    Brickworks Investment Company Limited




                    NOTES TO THE FINANCIAL STATEMENTS
For personal use only

                    FOR THE YEAR ENDED 30 JUNE 2008 (continued)

                    21. SUPERANNUATION COMMITMENTS
                    The Group contributes superannuation payments on behalf of directors in accordance with relevant legislation.
                    Superannuation funds are nominated by the individual directors and are independent of the Group.

                    22. RELATED PARTY TRANSACTIONS
                    Related parties of the Group fall into the following categories:
                    (i) Controlled Entities
                    (a) Acquisition of controlled entities
                    During 2008, the Group did not acquire any controlled entities.
                    At 30 June 2008, subsidiaries of the Parent were:
                                                                           Country of Incorporation   Percentage Owned (%)
                                                                                                       2008         2007
                             Brickworks Securities Pty Limited                  Australia               100          100
                             Pacific Strategic Investments Pty Limited          Australia               100          100

                    Transactions between the Parent and its controlled entities consist of loan balance from the Parent to its
                    controlled entities. No interest is charged on the loan balance to the controlled entities and no repayment
                    period is fixed for the loan.
                    (b) Disposal of controlled entities
                    There was no disposal of controlled entities in 2008 (2007: Nil).

                    (ii) Directors/Officers Related Entities
                    Persons who were Directors/Officers of Brickworks Investment Company Limited for part or all of the year
                    ended 30 June 2008 were:
                    Directors:                 RD Millner
                                               DC Hall
                                               AJ Payne
                                               GG Hill
                    Company Secretary:         RJ Pillinger
                                               G S Bruce
                                               J de Gouveia

                    Pitt Capital Partners Limited
                    There were no transactions with Pitt Capital Partners Limited during the year (2007: $125,000).




                        40
                                                                                                                      2008 Annual Report
                    Brickworks Investment Company Limited




                    NOTES TO THE FINANCIAL STATEMENTS
For personal use only

                    FOR THE YEAR ENDED 30 JUNE 2008 (continued)

                    (ii) Directors/Officers Related Entities (contiuned)
                    Souls Funds Management Limited
                    The Group has appointed Souls Funds Management Limited, an entity in which Messrs. RD Millner and GG Hill
                    have an indirect interest, to act as investment manager for a period of 5 years from 24 October 2003. Under
                    the agreement between the two parties, the Group agrees to pay Souls Funds Management Limited a monthly
                    management fee equal to one-twelfth of 0.35% of the assets of the Group in the preceding month under their
                    management.
                    Management fees paid or payable for the year ending 30 June 2008 were $1,417,805 (2007: $1,132,182); and
                    the management fee owed by the Group to Souls Funds Management Limited at 30 June 2008 was $126,413
                    (2007: $119,187).
                    Corporate and Administrative Services Pty Limited
                    The Group has appointed Corporate & Administrative Services Pty Limited, an entity in which Mr. RD Millner
                    has an indirect interest to provide the Group with administration, company secretarial services and preparation
                    of all financial accounts.
                    Administration and secretarial fees paid for services provided to the Parent and its controlled entities for the
                    year ending 30 June 2008 were $111,540 (2007: $111,540, including GST) and are at standard market rates.
                    No administration fees were owed by the Group to Corporate & Administrative Services Pty Limited as at 30
                    June 2008.

                    (iii) Transactions in securities
                    Aggregate number of securities acquired or disposed of by Directors or their Director-related entities:
                                                                                      2008            2007
                                                                                 No. of Shares No. of Shares
                                         Acquisition - Shares                     2,039,795     1,876,434
                                         Disposal - Shares                              -            -

                    During the year ended 30 June 2008, entities related to Directors acquired, under normal commercial terms,
                    shares in the Parent as follows:
                    (ii) Entities related to Mr RD Millner:     1,989,907 shares (2007: 1,046,365 shares)
                    (ii) Entities related to Mr DC Hall:        11,916 shares (2007: 47,231 shares)
                    (iii) Entities related to Mr AJ Payne:      33,806 shares (2007: 25,304 shares)
                    (iv) Entities related to Mr. GG Hill:       4,166 shares (2007: 757,534 shares)

                    Directors acquired shares through dividend reinvestment plan, share purchase plan or on-market purchase.
                    There has been no other change to Directors’ shareholdings during the year ended 30 June 2008.
                    Messrs RD Millner, DC Hall, AJ Payne and GG Hill, or their associated entities, being shareholders are entitled
                    to receive dividends.




                                                                                                                                 41
                    2008 Annual Report
                    Brickworks Investment Company Limited




                    NOTES TO THE FINANCIAL STATEMENTS
For personal use only

                    FOR THE YEAR ENDED 30 JUNE 2008 (continued)

                    23. FINANCIAL REPORTING BY SEGMENTS
                    The Group operates predominately in the securities industry in Australia.

                    24. MANAGEMENT OF FINANCIAL RISK
                    The risks associated with the holding of financial instruments such as investments, cash, bank bills and
                    borrowings include market risk, credit risk and liquidity risk. The Audit Committee has approved the policies
                    and procedures that have been established to manage these risks. The effectiveness of these policies and
                    procedures is reviewed by the Audit Committee.

                    a) Financial instruments’ terms, conditions and accounting policies
                    The Group’s accounting policies are included in note 1, while the terms and conditions of each class of
                    financial asset, financial liability and equity instrument, both recognised and unrecognised at the balance date,
                    are included under the appropriate note for that instrument.

                    b) Net fair values
                    The carrying amounts of financial instruments in the balance sheets approximate their net fair value determined
                    in accordance with the accounting policies disclosed in note 1 to the accounts.

                    c) Credit risk
                    The risk that a financial loss will occur because counterparty to a financial instrument fails to discharge an
                    obligation is known as credit risk.
                    The credit risk on the Group’s financial assets, excluding investments, is the carrying amount of those assets.
                    The Group’s principal credit risk exposures arise from the investment in liquid assets, such as cash and bank
                    bills, and income receivable.
                    The spread of cash and bank bills between banks is reviewed monthly by the board to determine if it is within
                    agreed limits. Income receivable is comprised of accrued interest and dividends and distributions which were
                    brought to account on the date the shares or units traded ex-dividend.
                    There are no financial instruments overdue or considered to be impaired.

                    d) Market risk
                    Market risk is the risk that changes in market prices will affect the fair value of the financial instrument.
                    The Group is a long term investor in companies and trusts and is therefore exposed to market risk through the
                    movement of the share prices of the companies and trusts in which it is invested.
                    As the market value of individual companies fluctuates throughout the day, the fair value of the portfolio
                    changes continuously. The change in the fair value of the portfolio is recognised through the Revaluation
                    Reserve. Investments represent 89% (2007: 87%) of total assets.
                    A 5% movement in the market value of each of the companies and trusts within the portfolio would result in a
                    4% (2007: 4%) movement in the net assets before provision for tax on unrealised capital gains at 30 June 2008.
                    The net asset backing before provision for tax on unrealised capital gains would move by 6.8 cents per share
                    at 30 June 2008.
                    The market value of the portfolio could fall by 25% before any reduction in the value of the portfolio would be
                    recognised through the Income Statement.
                    The performance of the companies within the portfolio are monitored by the Investment Committee and the
                    Board as a whole.

                        42
                                                                                                                          2008 Annual Report
                    Brickworks Investment Company Limited




                    NOTES TO THE FINANCIAL STATEMENTS
For personal use only

                    FOR THE YEAR ENDED 30 JUNE 2008 (continued)

                    24. MANAGEMENT OF FINANCIAL RISK (continued)

                    d) Market risk (continued)
                    The Group seeks to reduce market risk at the investment portfolio level by ensuring that it is not, in the opinion
                    of the Investment Committee, overly exposed to one Group or one particular sector of the market.
                    At 30 June, the spread of investments is in the following sectors:
                                                             Percentage of total investment                       Amount
                        Sector                                  2008                2007                   2008           20076
                                                                  %                    %                  $’000            $’000
                        Banks                                  23.21               31.54                101,596         133,438
                        Energy                                 20.85                 9.69                91,252          40,995
                        Materials                              13.19               11.65                 57,719          49,296
                        Bank deposits                           9.97               12.18                 43,645          51,547
                        Food & Staples Retailing                7.22                4.37                 31,588          18,488
                        Diversified Financials                  5.15                5.77                 22,526          24,417
                        Insurance                               4.49                3.54                 19,629          14,976
                        Commercial Services and Supplies        3.68                3.60                 16,105          15,239
                        Telecommunications Services             2.50                2.54                 10,927          10,725
                        Media                                   2.20                3.90                  9,610          16,479
                        Utilities                               1.73                2.34                  7,565           9,894
                        Food, Beverages & Tobacco               1.31                1.01                  5,730           4,290
                        Consumer Services                       1.16                0.61                  5,061           2,573
                        Transportation                          1.07                1.74                  4,669           7,340
                        Capital Goods                           1.03                4.37                  4,494          18,480
                        Real Estate                             0.72                0.31                  3,141           1,302
                        Retailing                               0.42                0.00                  1,854                -
                        Consumer Durables and Apparel           0.09                0.12                    402              487
                        Health Care Equipment & Services        0.03                 0.02                   133               90
                        Automobile & Components                    -                 0.14                     -              609
                        Software and Services                      -                 0.56                     -            2,373
                                                               100.0               100.0                437,646         423,038

                    Securities representing over 5% of the investment portfolio at 30 June were:
                                                             Percentage of total investment                       Amount
                        Company                                 2008                2007                 2008            20076
                                                                  %                    %                 $’000            $’000
                        New Hope Corporation Limited          18.8%                 8.2%               $74,099          $30,371
                        National Australia Bank Limited       10.6%               17.3%                $41,920          $64,207
                        BHP Billiton Limited                  10.2%                 8.2%               $40,361          $30,483
                        Commonwealth Bank                      7.4%               10.3%                $29,307          $38,193
                                                              47.0%               44.0%               $185,687         $163,254

                                                                                                                                   43
                    2008 Annual Report
                    Brickworks Investment Company Limited




                    NOTES TO THE FINANCIAL STATEMENTS
For personal use only

                    FOR THE YEAR ENDED 30 JUNE 2008 (continued)

                    24. MANAGEMENT OF FINANCIAL RISK (continued)

                    d) Market risk (continued)
                    The relative weightings of the individual securities and relevant market sectors are reviewed at each meeting of
                    the Investment Committee and the Board, and risk can be managed by reducing exposure where necessary.
                    There are no set parameters as to a minimum or maximum amount of the portfolio that can be invested in a
                    single company or sector.
                    The Group traded all investment transactions through a number of major broking firms with trades evenly
                    placed amongst those firms.
                    The Group is not exposed to foreign currency risk as all its investments are quoted in Australian dollars. The fair
                    value of the Group’s other financial instruments is unlikely to be materially affected by a movement in interest
                    rates as they generally have short dated maturities and fixed interest rates.

                    e) Liquidity risk
                    Liquidity risk is the risk that the Group is unable to meet its financial obligations as they fall due.
                    The Group has a zero level of gearing, and sufficient cash reserves to meet operating cash requirements at
                    current levels for well in excess of 5 years.
                    The Group’s other major cash outflows are the purchase of securities and dividends paid to shareholders and
                    the level of both of these is fully controllable by the Board.
                    Furthermore, the majority of the assets of the Group in the form of readily tradable securities which can be sold
                    on-market if necessary.

                    f) Capital risk management
                    The Group invests its equity in a diversified portfolio of assets that aim to generate a growing income stream for
                    distribution to shareholders in the form of fully franked dividends.
                    The capital base is managed to ensure there are funds available for investment as opportunities arise. Capital is
                    increased annually through the issue of shares under the Dividend Reinvestment Plan. Other means of
                    increasing capital include Rights Issues, Share Placements and Share Purchase Plans.

                    25. CONTINGENT LIABILITIES
                    The Group has no contingent liabilities at 30 June 2008.

                    26. AUTHORISATION
                    The financial report was authorised for issue on 6 August 2008 by the Board of Directors.




                        44
                                                                                                                              2008 Annual Report
                    Brickworks Investment Company Limited




                    DIRECTORS’ DECLARATION
For personal use only

                    The directors of Brickworks Investment Company Limited declare that:
                    1.       The financial statements and notes, as set out on pages 23 to 44, are in accordance with the
                             Corporations Act 2001 and:

                             a.          comply with Accounting Standards and the Corporations Regulations 2001; and

                             b.          give a true and fair view of the financial position as at 30 June 2008 and of the performance
                                         for the year ended on that date of the company and economic entity.

                    2.       In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay
                             its debts as and when they become due and payable.

                    3.       This declaration has been made after receiving the declaration required to be made to the directors
                             in accordance with section 295A of the Corporations Act 2001 for the financial year ending
                             30 June 2008.

                    This declaration is made in accordance with a resolution of the Board of Directors.




                    Robert D Millner
                    Director

                    Sydney
                    6 August 2008




                                                                                                                                    45
                    2008 Annual Report
                    Brickworks Investment Company Limited




                    AUDITOR’S REPORT
For personal use only

                    TRAVIS & TRAVIS CHARTERED ACCOUNTANTS
                                                                                                                                                      P.O. BOX 429
                                                                                                                                         LANE COVE, AUSTRALIA
                                                                                                                                    TELEPHONE: +61 2 9427 6555
                                                                                                                                      FACSIMILE:+61 2 9427 5127
                                                                                                                                   EMAIL: info@travisntravis.com.au
                                                                     INDEPENDENT AUDITOR’S REPORT
                                                                          TO THE MEMBERS OF
                                                                BRICKWORKS INVESTMENT COMPANY LIMITED

                    Report on the Financial Report
                    We have audited the accompanying financial report of Brickworks Investment Company Limited (the parent) and Controlled Entities (the
                    consolidated entity), which comprises the balance sheet as at 30 June 2008, and the income statement, statement of changes in equity
                    and cash flow statement for the year ended on that date, a summary of significant accounting policies and other explanatory notes and the
                    directors’ declaration of the consolidated entity comprising the parent and the entities it controlled at the year’s end or from time to time
                    during the financial year.

                    Director’s Responsibility for the Financial Report
                    The directors of the company are responsible for the preparation and fair presentation of the financial report in accordance with Australian
                    Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes
                    establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material
                    misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that
                    are reasonable in the circumstances. In Note 1, the directors also state, in accordance with Accounting Standard AASB 101: Presentation
                    of Financial Statements, that compliance with the Australian equivalents to International Financial Reporting Standards (IFRS) ensures that
                    the financial report, comprising the financial statements and notes, complies with IFRS.

                    Audit Responsibility
                    Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with
                    Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit
                    engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material
                    misstatement.
                    An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The
                    procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial
                    report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
                    preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but
                    not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the
                    appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating
                    the overall presentation of the financial report.
                    We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

                    Independence
                    In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

                    Auditor’s Opinion

                    In our opinion:
                    (a)        The financial report of Brickworks Investment Company Limited and Controlled Entities is in accordance with the Corporations
                               Act 2001, including:
                               (i) giving a true and fair view of the company’s and consolidated entity’s financial position as at 30 June 2008 and of their
                                   performance for the year ended on that date; and
                               (ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations
                                    Regulations 2001; and

                    (b)        The financial report also complies with International Financial Reporting Standards as disclosed in Note 1.

                    TRAVIS & TRAVIS

                    A.J. FAIRALL                                                                                                           1/114 Longueville Road
                    Partner                                                                                                               LANE COVE NSW 2066
                    Dated: 6 August 2008

                    Liability limited by a scheme approved under Professional Standards legislation.


                          46
                                                                                                                                                 2008 Annual Report
                    Brickworks Investment Company Limited




                    AUDITOR’S INDEPENDENCE DECLARATION
For personal use only

                    TRAVIS & TRAVIS CHARTERED ACCOUNTANTS
                                                                                                                                     P.O. BOX 429
                                                                                                                        LANE COVE, AUSTRALIA
                                                                                                                   TELEPHONE: +61 2 9427 6555
                                                                                                                     FACSIMILE:+61 2 9427 5127
                                                                                                                  EMAIL: info@travisntravis.com.au


                    Auditor’s Independence Declaration to the Directors of Brickworks Investment Company Limited

                    I declare that, to the best of my knowledge and belief, during the year ended 30 June 2008 there have been:

                    (i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the
                        audit; and

                    (ii) no contraventions of any applicable code of professional conduct in relation to the audit.

                    TRAVIS & TRAVIS

                    A.J. FAIRALL

                    Dated: 6 August 2008

                    1/114 Longueville Road, Lane Cove NSW




                    Liability limited by a scheme approved under Professional Standards legislation.


                                                                                                                                             47
                    2008 Annual Report
                    Brickworks Investment Company Limited




                    ASX Additional Information
For personal use only

                    1) Equity Holders
                    At 31 July 2008, there were 8,466 holders of ordinary shares in the capital of the Parent. These holders were
                    distributed as follow:

                        No. of Shares held                                               No. of Shareholders

                        1           –   1,000                                                      364
                        1,001       –   5,000                                                    1,539
                        5,001       –   10,000                                                   1,492
                        10,001 –        100,000                                                  4,781
                        100,001 and over                                                           290
                        Total                                                                    8,466


                        Holding less than a marketable parcel of 385 shares                        189


                            Votes of Members
                            Article 5.12 of the Company’s Constitution provides:
                            a) Subject to this Constitution and any rights or restrictions attached to a class of Shares, on a show of
                               hands at a meeting of Members, every Eligible Member present has one vote.

                            b) Subject to this Constitution and any rights or restrictions attached to a class of Shares, on a poll at a
                               meeting of Members, every Eligible Member present has:

                                 (i) one vote for each fully paid up Share (whether the issue price of the Share was paid up or credited or
                                     both) that the Eligible Member holds; and

                                 (ii) a fraction of one vote for each partly paid up Share that the Eligible Member holds. The fraction is
                                      equal to the proportion which the amount paid up on that Share (excluding amounts credited) is to
                                      the total amounts paid up and payable (excluding amounts credited on that Share).




                            48
                                                                                                                            2008 Annual Report
                    Brickworks Investment Company Limited




                    ASX Additional Information (continued)
For personal use only

                    The 20 largest holdings of the Company’s share as at 31 July 2008 are listed below:
                        Name                                                                        Shares Held               %
                        Brickworks Limited                                                             51,721,775         17.78%
                        Washington H Soul Pattinson & Co Ltd                                            7,671,387          2.64%
                        Bougainville Copper Limited                                                     7,297,357          2.51%
                        Argo Investments Limited                                                        6,477,402          2.23%
                        J S Millner Holdings Pty Limited                                                2,388,523          0.82%
                        Aust Executor Trustees Ltd <LIC Fund A/C>                                       2,244,035          0.77%
                        Palmerston Pty Ltd                                                              1,372,092          0.47%
                        UBS Wealth Management Australia Nominees Pty Ltd                                1,257,172          0.43%
                        T G Millner Holdings Pty Limited                                                1,090,731          0.37%
                        Mr Galfrid Leslie Melville                                                        957,043          0.33%
                        Willpower Investments Pty Ltd                                                     856,920          0.29%
                        Mr David McKee & Mrs Pamela Forbes McKee <D McKee Super Fund A/C>                 842,331          0.29%
                        Trehant Pty Ltd                                                                   840,000          0.29%
                        McRallek Pty Ltd                                                                  735,852          0.25%
                        K C Perks Investments Pty Ltd <Kym C Perks Super Fund A/C>                        709,710          0.24%
                        Mr Robert Dobson Millner & Mr Michael Millner <Est James S Millner A/C>           703,243          0.24%
                        Janivan Investments Pty Ltd                                                       700,000          0.24%
                        RBC Dexia Investor Services Australia Nominees Pty Limited <MLCI A/C>             689,456          0.24%
                        DEC Investments Pty Ltd                                                           656,408          0.23%
                        Millane Pty Ltd                                                                   649,099          0.22%
                        Total top 20 security holders                                                  89,860,536         30.88%
                        Total number of shares on Issue                                               290,966,594

                    2) Substantial Shareholders
                    As at 31 July 2008 the name and holding of substantial shareholder as disclosed in a notice received by the
                    company is:

                        Substantial Shareholders                                          No. of Shares              % of Total
                        Brickworks Limited                                                  51,721,775                   17.78%

                    3) Other Information
                          I There is no current on-market buy-back in place.
                          I There were 417 (2007: 187) transactions in securities undertaken by the Parent and the total brokerage
                             paid or accrued during the year was $292,959 (2007: $104,002)

                    4) Management Fees
                    Management fees paid and accrued during the year ended 30 June 2008 to Souls Funds Management Limited
                    were $1,417,805 (2007: $1,132,182).
                    5) Management Expense Ratio
                    The Management Expense Ratio (“MER”) is the total expenses of the Group for the financial year, as shown in the
                    income statement, expressed as a percentage of the average total assets of the Group for the financial year.

                            30/06/04       30/06/05        30/06/06        30/06/07        30/06/08
                             0.69%          0.71%           0.56%           0.46%           0.46%
                                                                                                                               49
                    2008 Annual Report
For personal use only